With the increased risk of such investigations it may be worth considering taking out our annual insurance policy to protect you and your business from unexpected costs; an investigation will undoubtedly result in additional accountancy work being undertaken. The amount of work will depend upon the complexity of the case but the cost could be substantial.
Tax investigations cause unexpected and unwanted bills. With the government promising HMRC a further £800m to pursue non-compliance and tax evasion, large numbers of businesses and individuals will be affected by this compliance activity.
Our Tax Investigations Service is designed to provide clients with protection against the representation costs of an enquiry. If selected for an investigation, we will defend you and aim to resolve the matter within the shortest possible timeframe.
The Tax Investigation Service will enable us to:
- Respond on your behalf
- Deal with all correspondence from HMRC
- Prepare and defend your case
- Negotiate the best possible outcome for you
Typical enquiries can last 19 months and cost over £5,000 of professional fees, simply to prove your finances are correct.
HMRC – the facts
- HMRC collected £26.6bn from compliance in 2015/16 and has a target to collect £27.6bn in 2016/17.
- 46% of HMRC staff is now involved in enforcement and compliance work
- The Revenue is moving towards an estate of 13 regional centres from 170 tax offices, partly to build and develop specialist compliance teams.
In addition, Connect, HMRC’s award winning technology helps identify risks on tax returns submitted by individuals, partnerships and companies. Connect matches information held by other government agencies, tax evasion reports made by the public, social media profiling and data provided by third parties such as banks and letting agents to name a few. HMRC is exploiting this data further by moving all of this information into a single storage space called the ‘enterprise data hub’, where tax staff will see everything they need to know about an individual in one place.
A thorough defence is crucial to ensure you only pay the right amount of tax. Our Tax Investigations Service ensures you can afford a full, expert defence in the event of a tax enquiry and we strongly recommend that all clients subscribe.
Require more information?
If you would like more information or would like to speak to us direct then call us on 01325 734843. Or if you would prefer, ask us a question online.