HMRC investigates the tax affairs of an increasing number of individuals and businesses in the UK each year. HMRC can initiate a tax investigation services at any time, regardless of how big or little your business is.
HMRC does not need a specific basis to initiate a tax inquiry, so everybody who files a tax return risks this intrusive, stressful, and ultimately costly experience.
What does it mean to be protected from a tax investigation?
Simply put, tax investigation protection (also known as charge protection) protects a client from the extra costs associated with HMRC inquiries. It allows the Taxation & accountancy firm that assisted them to recoup their professional fees for defending them. Anyone, whether a corporation, a charity, or an individual, might be the focus of an investigation to collect more tax. As a result, hundreds of business and personal tax forms, as well as VAT and PAYE records, are scrutinised each year.
What are the advantages of having the cover?
The main advantage of purchasing tax investigation protection is that if HMRC decides to visit or speak with you concerning an investigation, your accountant can handle everything for you at no additional expense. The costs of the defences can be claimed under your provider’s coverage, which protects you from having to pay potentially huge sums to cover the additional charges.
What does tax investigation services involve?
Because there are multiple different HMRC investigation cover providers, the coverage and charges will vary based on which protection business your accounting firm employs. As with many other types of tax insurance, a maximum monetary amount of professional fees is covered and is designed to cover all contact with HMRC, attendance at meetings, and work on applications. Routine compliance work, such as account preparation, is also not covered because it is usually included in your annual accounting fees. Clients must also understand their tax obligations and be diligent when it comes to filing returns in order to be protected from tax investigations.
The cover may be invalidated if returns are not completed and submitted correctly and on time. So with the help of tax investigation services, you can defend yourself and feel protected while they:
- Manage all interactions with the Tax Inspector, including meetings and correspondence.
- Negotiate on your behalf to ensure you pay the correct amount of tax.
Take responsibility for ensuring that HMRC treats you properly and gives you complete peace of mind that your professional defense costs are reimbursed.