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[04.07.2019]

Tax Investigation Protection – ensure you are covered

HMRC’s Connect system is an £80m investment which contains over 22bn lines of data. This allows their enquiry activity to be more focused and better targeted. In the 2017-18 financial year HMRC collected £30.3 billion through compliance activity. It is not unusual for in-depth tax enquiries to last for well over a year and run up fees of thousands of pounds. With this in mind can you afford not to have tax investigation protection?

HMRC Tax Investigations

There could be a number of reasons why HMRC select you or your business for an investigation. You could be selected as specialist analytical experts have gone through the data HMRC hold and have identified a potential risk. You could be chosen due to the nature of your business, where you live or because HMRC are targeting your profession.

Additionally, a proportion of enquiries are selected completely at random.

Being selected for a HMRC investigation does not necessarily mean you have done something ‘wrong’. Once the enquiry has been successfully concluded HMRC may confirm there is no additional tax liability due, and your figures were correct – however without tax investigation protection you would still have your professional fees to pay.

What Tax Investigation Protection Covers

Tax investigation protection covers the cost of the professional fees associated with a compliance check. The cover will protect you from professional fees and allow us undertake the following on your behalf:

  • Check HMRC is entitled to investigate the tax return selected and challenge if not
  • Ensure the tax inspector only asks for relevant information and documents
  • Respond to communications from HMRC regarding the investigation
  • Provide supporting information from our files relating to your accounts
  • Prepare and attend face to face meetings with the tax inspector
  • Argue any complex or technical tax cases or points raised
  • Handle any settlement negotiations

In summary the protection allows us to manage the investigation on your behalf for a small annual fee so you can get on with running your business.

Tax Investigation Protection with DNG

Here at DNG Dove Naish LLP, Chartered Accountants we work with one of the UK’s leading providers of Tax investigation protection.  The cost for the tax investigation protection is a fraction of typical defence costs of an investigation, so we recommend this to all of our clients. It acts as peace of mind from the costs of an investigation which can be from a few thousand pounds up to tens of thousands of pounds in some cases.

For more information on our Tax investigation protection please click here or contact us and we will be happy to answer any questions and guide you through the process.

Ian Lowry

 

 

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