What is Tax Investigation Protection – Do I really need it?
Tax investigation protection is a type of insurance that covers the costs of professional fees in the event of a tax investigation by HM Revenue and Customs (HMRC).
It can provide peace of mind and financial protection in case of unexpected tax investigations, which can be time-consuming and costly.
What are the risks of tax investigation?
The risks of a tax investigation can include fines, penalties, interest charges, and even criminal prosecution in some cases.
It can also be a time-consuming and stressful process, requiring extensive documentation and potentially leading to a damaged reputation or loss of business.
It is important to take steps to minimise the risk of a tax investigation, such as keeping accurate records and seeking professional advice when necessary.
Who is most at risk of tax investigation?
Anyone can be selected for a tax investigation, but certain groups are considered to be at higher risk. These include self-employed individuals, high earners, those with complex tax affairs, and those who have previously been investigated.
However, it’s important to note that being in one of these groups does not necessarily mean you will be investigated. HMRC regularly undertakes random enquiries, so you could be picked out for no particular reason.
How long does a tax investigation enquiry take?
The length of a tax investigation can vary greatly depending on the complexity of the case and the cooperation of the taxpayer.
Some investigations can be resolved within a few weeks, while others can take several months or even years to complete.
It is important to work with a qualified tax professional to ensure that the investigation is handled efficiently and effectively.
How can Franks Accountants protect me from tax investigation?
Receiving notification can be scary but firstly and most importantly, don’t panic. More often than not it is due to nothing more than a minor discrepancy and the case is quickly closed.
There is no guaranteed way to completely avoid a tax investigation, but there are steps you can take to reduce your chances.
These include keeping accurate records, filing your taxes on time, and avoiding any suspicious or unusual activity on your tax returns.
If you are selected for investigation however, all our clients receive our Tax Investigation Protection by default. The benefits of our package include:
- We ensure you receive the best defence to protect your tax position.
- We address the complexities or technical tax questions raised throughout the enquiry.
- We’ll challenge HMRC’s assertions and assumptions head on, establish the basis of the enquiry is correct and ensure your case is handled fairly.
- We’ll handle all communication with HMRC, including letters, phone calls or notices issued.
- We ensure that the tax inspector is requesting only the relevant information and documents, and provide the appropriate supporting evidence.
- We’ll prepare for and attend any face to face meetings with HMRC.
The best part is that our clients do not have to worry about rising costs of time spent dealing with the issues throughout the length of the enquiry.
Whether it’s a PAYE or VAT visit, a technical challenge or a detailed books and records enquiry, our TAX Investigation Protection is designed to get you the best possible results, included in your current monthly fees.
If you’d like to find out more, please get in touch for a no-obligation discussion.