HMRC enquiries are becoming better targeted and are being undertaken with an unprecedented level of details and persistence. In 2019/20, the total tax revenue increased by £8.8bn to £636.7bn, with compliance activity alone yielding £36.9bn – an 8.2% increase in additional tax when compared with 2018/19. Here, Clayton & Brewill explains why tax investigations protection is so important for businesses.
The cost of defending yourself can potentially be huge; HMRC enquiries are taking longer and the defence costs are increasing. Even when the outcome of an enquiry results in no adjustments to your tax position, the cost of the defence can be just as costly.
Why should you have tax investigations protection in place?
Investigations are on the rise. HMRC has greater access to technology and data (including banks, building societies, letting agents, DVLA, mortgage applications and data from overseas tax authorities) than ever before. The focus for HMRC has changed over the past few years too; it is now concerned with maximising the revenues due.
Tax investigations can happen to anyone, whether you’re an individual or a business. HMRC’s Connect System currently selects nine of every ten enquiries and it is designed to identify those who may have paid too little tax. Even if you’ve done nothing wrong, anyone can be selected – meaning no-one is immune to scrutiny.
Having protection in place helps give you peace of mind. For a small yearly cost, you can rest assured that you are fully protected against professional costs associated with an enquiry. Having the necessary tax investigation protection in place will also ensure you receive the best defence – so your tax position is also protected.
Clayton & Brewill provides a valuable tax investigations service for our clients, which enables us to defend you in the unfortunate case that you are selected for an enquiry without worrying about the cost. We are confident that the service delivers comprehensive protection against any potential fees arising from professional representation in the event of a HMRC enquiry. Subscribing to our tax investigations service means we will:
- Provide you with full representation and challenge HMRC’s arguments
- Ensure you have a robust defense based of the facts, not your ability to afford a defence
- Put you on equal footing with HMRC from the start
- Protect your work by achieving a fair enquiry outcome without facing an unwanted accountancy bill
Our solution will now also protect our clients for any investigations into approved Coronavirus Job Retention Scheme and Self-Employment Income Support Scheme payments, as well as gift aid cover and Stamp Duty Land Tax and its regional equivalents.