Are you protected against a HMRC enquiry?
Our expert Tax Fee Protection Service means we’ll be right by your side when you need us.
Why is HMRC investigating?
In the UK we live in an environment whereby the taxpayer is responsible for their own tax liability. HMRC opens investigations to see if the taxpayer has paid the right amount of tax on a random or selective basis. All this helps the government fill its ever expanding public finance black hole.
Beware of “Connect”!
HMRC now uses a sophisticated database called ‘Connect’ to start more than 80% of tax enquiries. The system collects data from 30 different sources, including UK and offshore banks, Companies House, the Land Registry, estate agents, the DVLA and other licensing authorities, and social media.
The data can be instantaneously reviewed by more than 3,000 HMRC investigators to produce a financial fingerprint for any taxpayer. If there are any discrepancies between tax returns or business accounts sent to HMRC, a tax enquiry will follow as sure as night follows day.
Tax enquiries started from ‘Connect’ have produced billions of pounds in additional tax over the last few years. Using ‘Connect’, HMRC can now target enquiries more accurately than ever before – but they still get it wrong sometimes. That’s why we will always challenge HMRC regarding their reasons for an enquiry when defending clients.
When HMRC comes knocking… Case of mistaken identity
A husband & wife partnership selling and installing double glazing was investigated by HMRC. At a meeting, HMRC alleged the husband had been dishonest. By the end of a long and detailed enquiry, HMRC repaid £129 of tax to the partnership and apologised, confirming that the allegation of dishonesty was a case of mistaken identity. Accountancy fees were approximately £5,000 and were paid in full by Vantage Fee Protect.
What could an investigation involve?
HMRC so far has been targeting the SME sector, medical professionals such as dentists / doctors and ‘hidden wealth’ in particular, where HMRC call upon individuals who are apparently living beyond their declared means. HMRC may have information about an offshore bank account, an expensive asset like a luxury car or even images from Google Earth showing a large extension. Reviewing records up to six years old is not uncommon and cost thousands to defend.
Where our service comes in
If the HMRC states its intention to investigate your tax payments don’t panic. Then call us – your dedicated accountant and best defence. We will translate the many complicated questions the taxman may pose, manage the entire conversation with the taxman, help you submit any required information and minimise the impact on your business or personal accounts.
As an additional benefit this protection provides complementary telephone access to employment, health & safety and general legal advisors, including support for employers with any adjustments made in response to the COVID-19
“HMRC is continually embarking on new ways to target you using a range of approaches and new technology. We are constantly vigilant and we stay up to date with the latest advances, but you are still at risk of an investigation at any time. Taking out a subscription to our policy means that our fees are one less thing for you to worry about. We can defend you for as long as it takes to achieve the right result.” Directors Ammu
Protect yourself today. Tax investigations can be costly and our expert support during this process is not covered in your usual accountancy fees. Investing a small amount into our Tax Fee Protection Policy now means that you will receive complete support if HMRC targets you. We will manage your case from start to finish, reducing stress and providing peace of mind.
Contact us about tax investigation insurance today.