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
 
Ian Piper
28th May 2019 Tax Havens: Countries still on the tax ‘Naughty Step’

It will probably be apparent to the casual observer, let alone the business owner or high net worth individual, that the tax climate has changed markedly over the last 10 years. As part of the raft of measures to tackle austerity within western developed nations, with the aim of collecting higher tax revenues, governments have…

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Ian Piper
9th April 2019 R&D Tax Relief: HMRC Try to Tackle Abuse

  Many companies, not just those in the tech industry, will have benefitted from the generosity of R&D tax relief. Eligible R&D expenditure can be inflated by a notional 230% uplift, and a refund of tax claimed on tax that was never paid in the first place. Perhaps not unsurprisingly, HMRC have identified abuses of…

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Vanessa Pearson
18th June 2018 Public Sector contractor wins IR35 case

HMRC have lost a second IR35 case this year, and their second case against the same contractor, putting into doubt their own understanding of the IR35 rules. Ian Wells, director of personal service company Jensal Software Limited provided his services to the Department of Work and Pensions via a recruitment agency during 2012 and 2013.…

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Vanessa Pearson
5th April 2018 HMRC loses IR35 case

  A contractor in the construction industry, Mark Daniels, has won his appeal against HMRC. In MDCM Ltd v Revenue & Customs, HMRC were defending their decision that a contract between Mr Daniels’ personal service company MDMC Ltd and recruitment agency Solutions, which provided his services to Structure Tone Ltd,  should have been caught by…

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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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Barbara Nicholas
19th June 2017 Capital Gains Tax when you sell your house – make sure you disclose all the facts to HMRC

HMRC’s ongoing scrutiny of private residence relief is in the news again, with another case going before the First Tier Tribunal. Mr & Mrs Ritchie were partially successful in their claim for relief on the sale of their home, which cost them less than £200,000 but which they sold to a developer for £2 million.…

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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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Roger Taylor
16th December 2016 Latest HMRC Campaign

Untaxed Interest Letter from HMRC: Are you one of the ‘lucky’ ones? HMRC have recently sent out 10,000 letters to individual taxpayers whose Self Assessment Tax returns indicate that they have been in receipt of untaxed interest in the 2014/15 tax year. The letter invites the taxpayer to reconsider the entries on their return, to…

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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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