Worried about the accountancy fees of a tax investigation?
Thousands of individuals and businesses will be investigated each year by HM Revenue and Customs. VAT and PAYE payments are thoroughly checked with the intention of raising more tax. Some will be randomly selected for a full enquiry as part of the Error and Fraud Analysis Programme. These are known as EFAP enquiries.
As of April 2009 HMRC have been able to visit business premises to inspect all tax records. They can now also issue written queries before you have even submitted your annual returns.
If you have a business insurance policy you MAY already have legal expenses insurance included that MAY provide some Tax/VAT investigation cover, however you would need to check the terms and conditions of that policy to ascertain this. Self employed consultants are also subject to IR35 enquiries, cover for which is normally only provided in specialist Tax and VAT investigation policies.
Ask us about which Investigation Insurance Policy is the right one for you, we are happy to advise you.
If you still need convincing, please do take the time to read the following quote which has been kept anonymous by its writer, but really makes you think:
“My company was investigated by HMRC. It was a random check and we were completely unprepared.
We have always used a local accountancy firm. The fees associated with the investigation were in excess of £4,800. There was nothing we could do about it. We had to pay it.
When we joined our accountants, we were offered tax investigation insurance, but we declined. In hindsight, of course we would have taken it.
We have now taken up insurance via our accountants with a company called PFP (Professional Fee Protection). The cost of their tax investigation insurance is next to nothing and would have covered the accountants’ fees during the investigation.
I’ve never been a fan of any kind of insurance, but for us it is definitely worthwhile. We are only a small business, and the cost of the tax investigation nearly put us out of business!
On the basis of my experience, I would recommend taking tax investigation insurance. It’s such a small amount of money and it could save a fortune.
I hope this helps.”
To book an initial free consultation please Contact Us or telephone us today.