What could an investigation involve?
HMRC so far has been targeting the SME sector, medical professionals such as dentists / doctors and ‘hidden wealth’ in particular, where HMRC call upon individuals who are apparently living beyond their declared means.
HMRC may have information about an offshore bank account, an expensive asset like a luxury car or even images from Google Earth showing a large extension. Reviewing records up to six years old is not uncommon and cost thousands to defend.
Where our service comes in
If the HMRC states its intention to investigate your tax payments you don’t need to panic. Then just call or email us – your dedicated accountant and best defence against an enquiry.
We will translate the many complicated questions the taxman may pose, manage the entire conversation with the taxman, help you submit any required information and minimise the impact on your business or personal accounts.
We advise all our clients to join, or renew membership of the Dafferns Tax Fee protection scheme
Cover for businesses, individuals, companies and their directors
Business Support Helpline, staffed by qualified, experienced specialists on the following topics:
Our Fee Protection Service has been especially created to deal with HMRC’s powers and to protect you against the unexpected costs of an investigation. If we become involved from the start of any investigation, you are far more likely to escape paying extra tax or penalties.
Each year HM Revenue & Customs (HMRC) undertake an enormous number of tax enquiries into individuals and businesses to check they have paid the right amount of tax. Since 2010 HMRC have strengthened their approach to enquiry work by using wider powers and sophisticated software and consequently secured a record £34.1 billion of additional tax revenue in 2018/19, up a staggering £3.8 billion on the previous year.
Moving forwards we expect to see an even greater increase in the number of tax enquiries as HMRC look to recover the enormous £350bn government spend through the Covid-19 pandemic, as well as ensuring that the measures put in place to support the economy through this period have been utilised correctly by taxpayers.
Tax enquiries can last for months, even years and defending you against HMRC’s detailed questions requires specific expertise and can be time consuming and costly. Indeed, the cost of dealing with an enquiry can amount to thousands of pounds, even if no extra tax is payable.
Dafferns still do the work, so you will continue to deal with us, the accountants who know you and therefore be able to work on your case for as long as it takes to resolve the situation, up to our insurance policy limit.
Fiction: HMRC only investigate those who avoid tax
Fact: Every tax payer is at potential risk of being chosen for investigation
Fiction: You won’t be investigated if your records are accurate and you pay your taxes on time
Fact: HMRC’s inspectors don’t know your record keeping is accurate and up to date; however perfect your bookkeeping is, you can still be investigated
Fiction: I have a great accountant and simple tax affairs
Fact: Unfortunately, HMRC don’t consider who your accountant is when opening an investigation