The government spending review has made available £917million to tackle tax evasion, avoidance and fraud from 2011/12
No matter how excellent your track record is with HMRC, you could still be randomly selected for an Enquiry or Compliance Check and this type of work may cost you dear in terms of accountancy fees. It is good therefore to know that you can now purchase Tax Investigation Insurance, especially in light of the fact that HMRC is targeted to deliver an extra £7billion in compliance yield each year by 2014/15, and some corporations and businesses probably feel as though they are paying that single handedly!
Some recent statistics make worrying reading for business owners and operators: for example, the number of claims made against the 2011/12 year was 46% higher than the previous year! The number of claims made against the 2011/12 year was 4,311with only 0.04% being outright rejected with no payment made. Rarer than hen's teeth then!
Tax Investigation Insurance will cover fees incurred up to £75,000 charged by your accountant for defending you in the event of a tax enquiry by HRMC. Westhill Insurance Services can offer this insurance and so pay your accountant to defend your tax position for a modest annual premium should you suddenly become of interest to HMRC. Everyone dreads being the subject of an HMRC investigation and so having insurance in place to cover fees provides enormous peace of mind for little outlay.
Since April 2009, HMRC is 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 returns.
Every year, HMRC starts enquiries into many thousands of personal and business tax returns and accounts. VAT and PAYE payments are also thoroughly checked and their aim in every case is to collect more tax.
Even if you are confident your accounts are flawless, most tax enquiries are generated by computer 'risk profiling' and many are selected completely at random. As a result HMRC can sometimes pick the wrong target. Even if you have not done anything wrong, the taxman will not give up and will try hard to find mistakes you may have made.
The questions which HMRC ask are often very detailed and time-consuming to answer. The costs of defending your work can easily run into thousands of pounds, even if little or no extra tax is owed at the end of the enquiry.
The Main Benefits of the Policy:
> Your accountant will defend you should you receive any correspondence or a visit from HMRC
> The potentially high cost of professional fees for that defence will be claimed under your insurance policy
> It will not be necessary to accept unreasonable tax charges by HMRC because of concerns about professional fees
> You will have unlimited free access to telephone advice lines for tax, VAT, employment law and health & safety advice
For further information, please call us on 0208 308 0888 and speak with one of our friendly and professional advisors – or visit the website at www.westhill-insurance.co.uk and request a call back. This policy is both affordable and desirable if you want to keep yourself one step ahead in the complicated world that is the HMRC.
Contact Westhill Insurance Services, today.