Tax Enquiry and Investigation Service

 

In the UK we live in a self-assessment tax environment, where taxpayers are responsible for calculating their own tax liabilities. HMRC then police the system by having extensive powers to investigate the accuracy of tax returns by undertaking targeted or random tax enquiries (corporation taxincome tax and capital gains tax), record checks or by conducting control visits (VATPAYE/NIC, employment status and benefits in kind).

 

In response to the increased risk of our clients being subjected to such an enquiry or investigation, we offer clients the opportunity to subscribe to our tax enquiry and investigation service, before we submit their tax returns to HMRC. Clients can then rest assured that if a tax enquiry is opened, any additional professional fees (excluding the VAT, for VAT registered clients) that we charge for dealing with the enquiry will be paid direct to us by our insurance policy.

 

We recommend that all of our higher risk clients and those who wish to protect themselves against uncertainty should join the tax enquiry and investigation service.

 

Tax Enquiry and Investigation Service Main Terms and Conditions

 

Our tax enquiry and investigation service is backed by an insurance policy with Professional Fee Protection (PFP) who are one of the premier providers of insurance in this field. The main features of the scheme are:

  • There is no excess on the insurance cover.
  • Generally, cover is limited to £100,000 (£2,000 for interventions)
  • Cover for company directors, their spouses, and partners and their spouses is automatically included in the cover for the company or partnership provided we act for the individuals concerned.
  • The cover includes aspect enquiries, full enquiries, HMRC interventions, employer compliance reviews, VAT assurance visits, IR35 enquiries and status enquiries.
  • Access to a free telephone support line, providing expert advice on health and safety, employment issues and commercial legal matters.
  • Cover can extend to new clients, for whom we have not prepared their last tax return.
  • If you need to make a claim on this policy, we administer all aspects of the claim procedure.

 

The tax enquiry and investigation service runs from 1 April each year.

 



 
Latest Blogs in Tax Enquiry and Investigation Service
 
Philip Peters
5th October 2017 HMRC “Connect”: Now checking businesses that should VAT register.

We have known since 2010 that HMRC has a computer programme, called “Connect”, that is collecting data from a variety of sources about taxpayers, and then using this intelligence to check on correct tax compliance. We have known that these data sources include Banks, Social Media, DVLA, Local Authorities, Foreign Tax Jurisdictions and Land Registry.…

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Philip Peters
24th February 2017 Renewal Premiums

Tax Investigation Insurance: Premiums for 2017-18 policy year. Prices unchanged from the previous year:   Limited companies with turnover >£20m                    POA Limited companies with turnover £10m to £20m     £540 Limited companies with turnover < £10m                   £185 Partnerships and LLP’s                                                     £155 Sole traders                                                                         £100 Private clients                                                                       £40 Our tax investigation insurance business is…

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Philip Peters
22nd March 2016 Insurance Renewal

Tax Investigation Insurance: Premiums for 2016-17 policy year. Premiums wef 1 April 2016: Limited companies with turnover > £10m …… £540 Limited companies with turnover < £10m …… £185 Partnerships and LLP’s ……………………………. £155 Sole traders ……………………………………………. £100 Private clients……………………………………………..£40 Our tax investigation insurance business is administered from our Bury St Edmunds office(Contact: Jill Holt).

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Philip Peters
26th November 2015 Tax Revenues

Tax Investigations Insurance: £800 million more for HMRC, to close the ‘tax gap’. Among the many announcements affecting HMRC and the way it administers the tax system in future years, Chancellor George Osborne has pledged £800 million of funding for additional work to tackle tax evasion and non-compliance. The aim is to raise an additional…

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Philip Peters
24th July 2015 Tax Whistle-blowers

Tax Dodgers Beware: HMRC makes record payments to informants. Our Fee Protection insurers report that HMRC made payments of £605,000 to informants in the year to March, up 50% on the previous year. Around 100,000 calls were made to HMRC’s confidential telephone hotline over the last year. Finding sufficient supporting information to justify following up…

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Philip Peters
15th May 2015 HMRC Intelligence

HMRC “Connect” System: Big brother is watching you ! HMRC is gathering an increasing amount of data from a variety of sources about taxpayers using its “Connect” system. Since 2010 HMRC has collected information from organisations such as the banks, the DVLA, local authorities and foreign tax jurisdictions, and uses it to build up a…

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Philip Peters
23rd March 2015 Tax Enquiry Risk Mitigation

Tax Investigation Insurance: premiums for 2015-16 policy year Premiums wef 1 April 2015: Limited companies with turnover > £10m …… £525 Limited companies with turnover < £10m …… £180 Partnerships and LLP’s ……………………………. £150 Sole traders ……………………………………………. £100 Our tax investigation insurance business is administered from our Bury St Edmunds office(Contact: Jill Holt).

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Philip Peters
17th June 2014 Tax Risk Management

Insure against the risk of a ‘challenge’ from HMRC. Recent figures published by H M Revenue & Customs confirm that the government’s drive to close the “tax gap” yielded a record £23.9 billion of additional tax in 2013/14, an increase of £3.2 billion on the previous year and £9 billion more than three years ago.…

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Trina Nunn
5th December 2013 HMRC Investigations

Health Professionals Targeted in New HMRC Campaign. People in the health and wellbeing professions who have taxable income that they have not told HM Revenue and Customs (HMRC) about are being targeted in a new campaign. The Health and Wellbeing Tax Plan offers health professionals a time-limited opportunity to bring their tax affairs up to…

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Vanessa Pearson
24th January 2010 Continually Minimise IR35 Risk

We can assist in this process, by reviewing your current contractual terms and working practices, to assess “IR35 tax risk” and then suggest improvements. HMRC provide an online tool to assess your employment status: Employment Status Tool The following badges of trade are some of the factors HM Revenue & Customs would use in assessing…

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