Tax Enquiry Fee Protection Service

What powers do HM Revenue & Customs now have?

HMRC are able to visit business premises to inspect records covering all taxes including corporate , income , PAYE , NI , Capital Gains and VAT. They can now also issue written queries before you have even submitted your annual tax returns.

Can anyone’s tax affairs be scrutinised by HMRC?

Anyone that pays tax can come under scrutiny. Every year HMRC start enquiries into thousands of personal and business tax returns and accounts. VAT and PAYE payments are also thoroughly checked. The aim in every case is to collect more tax.

I’ve done nothing wrong, why should I worry about a tax enquiry?

Most enquiries are generated by computer “risk profiling” and many are selected completely at random. As a result, HMRC sometimes picks the wrong targets. Even if you have done nothing wrong, the taxman will not give up and will still try hard to find errors.

How much could a tax enquiry cost me in professional fees?

The questions asked by HMRC are usually very detailed and time consuming to answer. The costs of defending you can easily run into thousands of pounds, even if little or no extra tax is paid at the end of the enquiry. In some cases it may be felt prudent to pay the extra tax demanded rather than defend the enquiry as costs are not covered by normal annual fees and can sometimes outweigh the extra tax.

Is there anything I can do for peace of mind?

You can subscribe to the Fee Protection Service which will cover you for all the cost of our work in the event of a tax enquiry by HMRC.

What is the Fee Protection Service?

It is a service set up to protect you from the costs of HMRC enquiries. For a small fee you can obtain the benefits highlighted below. The service is backed by an Insurance Policy whereby we can claim professional costs incurred defending clients in the event of a tax enquiry.

What are the main benefits to subscribing clients of this service?

We will defend you should you receive any correspondence or visits from HMRC at no cost to you. You do not therefore need to accept unreasonable tax charges by HMRC due to concerns over the level of professional fees required to defend them.

What is covered by the service?

You are fully covered by the service for professional fees up to £75,000 for dealing with any correspondence from HMRC, attending any meetings with HMRC and all appeals to the First Tier Tribunal or Upper Tribunal should the case warrant it.

What is not covered by the service?

  • Routine compliance work, e.g. preparing your tax return
  • Overseeing HMRC whilst they review your records
  • Outstanding taxes, penalties, interest or any other amounts due to HMRC
  • Defence of criminal prosecution cases or serious fraud enquiries
  • Fees relating to pre-existing enquiries

How do I join or obtain more information?

Please contact this office and ask to speak to Brian or Peter who can go through everything with you and advise the costs specific to your circumstances.