Tax investigations are expensive, intrusive and stressful. The cost of an enquiry can seriously impact your financial security, and your health
Register here if you’d like to be included in our tax investigation insurance from 1 April 2023 to 31 March 2024.
No business is too small or too large for HMRC to challenge, but we are here to take the stress away, and give you peace of mind, starting from as little as 22p per day.
Experts are forecasting an increase in HMRC compliance activity this year – their annual revenue has increased again in the 2021/22 financial year from £608.8 billion to £731.1 billion much higher than pre-pandemic levels.
HMRC enquiries are better targeted and are being undertaken with an unprecedented level of detail. Even if you have not done anything wrong you could still be targeted for an investigation.
How do they do it?
HMRC uses a system called Connect. It’s designed to identify where too little tax has been paid. It’s now responsible for selecting 9 out of 10 enquiries, and does this using technology to identify anomalies between such things as bank interest, property transactions and lifestyle indicators to decide which people to investigate.
How much does a tax investigation cost?
Even if HMRC agree that you’ve done nothing wrong, you still need to prove this, which is where we come in.
As we know your business inside and out it makes sense if we manage the investigation for you, and handle all communications with HMRC. This can sometimes be a lengthy process, and could cost as much as £15,000!
Facts and figures
- Small businesses like you represent 95% of all UK businesses and employ 14 million people in the UK.
- In 2021/22 HMRC collected £731.1 billion through tax investigations, this is a massive increase from the £608.8 billion collected in 2020/2021
- The average cost of fees for an investigation are around £5,000 or more
- A typical enquiry can take over 18 months to resolve
How we can protect you
We are pleased to offer our Kinder Accountants Tax Investigations Service, which is designed to provide you with protection against the costs of an enquiry, and includes:
- Covering the full cost of an enquiry, up to £75,000 of our accountancy fees.
- Ensures you receive the best defence so that your tax position is protected
- Enables us to challenge HMRC’s assertions and assumptions head on, including complex or technical tax cases
- Handling all correspondence and interaction with HMRC, including attending any 1-1 meetings
- Comfort and peace of mind that we will fiercely defend any enquiry into you or your business.
- Most importantly your professional fees will be paid.
Protection for investigations into CJRS and SEISS Claims
Our solution will now also protect you for any investigations into:
- Approved Coronavirus Job Retention Scheme (furlough) payments
- Self-employment Income Support Scheme (SEISS) grants
- Gift aid cover
- Stamp duty land tax
What you need to do now
- You can sign up here for our tax investigation service.
- Please also have a look at our Tax investigations service leaflet for more info.
- As we feel it is important for all clients to have this protection in place, we are providing this protection for an affordable annual fee starting at £80 plus VAT for personal tax clients.
Could this be you?
HMRC opened a full enquiry into a self-employed caterer. The Inspector requested all of the books and records, and made further enquiries about the expenses claimed. We managed to manage the enquiry via correspondence alone, with no adjustments required to the return. Yet fees still amounted to £2,000, covered by the tax investigations insurance.
HMRC opened an enquiry into one aspect of a business partnership’s tax return. It only lasted 6 months, however it still cost £10,000 in fees, despite the return being 100% accurate.
For further information please contact us by calling 01432 273400 or email firstname.lastname@example.org