HMRC have the powers to open a
tax investigation where they suspect
that tax or duty has been evaded,
under-declared or underpaid, or that
a tax fraud has taken place
Remember, the annual cost for tax investigation protection is a fraction of the typical costs of a defence.
By 2020, it will be mandatory for most businesses to keep their records digitally (MTD : Making Tax Digital)
This means HMRC will be able to risk assess you for enquiry much quicker and yes, you guessed it, 'increase tax revenues'
HM Revenue and Custom's generated a record £28.9bn during the last financial year from challenging accounts, tax returns and business records.
It is not unusual for in-depth tax enquiries to last for well over a year and run up fees of thousands of pounds.
HM Revenue and Customs (HMRC) is determined to deliver more money from compliance activity. It is under intense pressure from both the government and MPs of all parties to pursue all tax which is due under law.
The likelihood of a tax enquiry by HM Revenue & Customs has continued to increase. Tax authorities from around the world are starting to share information under the Common Reporting Standard. Last year, in excess of 80,000 reports were made to the Tax Evasion Hotline and the number of referrals to HMRC from mortgage lenders broke the 10,000 barrier for the first time.
HMRC can now access all credit and debit card payments to find out the number and value of transactions completed by a specific trader. For example, if a cash based business has declared a turnover of £80,000, with card transactions amounting to £75,000, HMRC will want to know whether £5,000 of cash is an accurate record.
Protect yourself today: Our tax investigations package will meet the unwanted and unexpected professional fees to defend your position in the event HMRC starts a compliance check.
The professional fees involved during a tax investigation by HMRC into a tax payer's affairs can be substantial. In the event of an investigation, our fee protection will ensure that, subject to a maximum limit, all professional fees will be covered. (Subject to the policy's terms and conditions and service summary). Only an expert and professional defence will ensure that your tax affairs are treated correctly.
Our policies are available for both business and personal clients.
In the event of an investigation, our fee protection will ensure that, subject
to a maximum limit, all professional fees will be covered.
*Subject to the policy's terms and conditions and service summary
Taxpayers are opting to protect themselves against
the cost of tax investigations.