HM Revenue & Customs have recently stated that they are close to achieving the claw back of an extra £3.5 billion pounds per tax year from revenue lost to tax avoidance and evasion by their target date of 5 April 2008. There is no doubt that HMRC are looking to increase the number of tax investigations and enquiries which they see as providing a very lucrative return for the Exchequer at a relatively low cost. HMRC have now been given the power to turn up without previous notification and demand to have access to records.
Investigations, aspect enquiries and disputes by HMRC can not only be distressing and disruptive, but can also be very expensive. We are therefore urging all clients who might be at risk to consider joining our TaxSafe Fee Protection Scheme – before they are targeted. TaxSafe will cover the professional fees incurred in the event that you have an investigation, enquiry or dispute with HMRC.
Last year many clients took out insurance, and some innocent clients were able to save thousands of pounds in professional fees as a result. Others did not, and some clients thought this was an aggressive marketing drive.
It isn’t – we have professional duty to advise people that insurance exists. The costs of dealing with an enquiry can be disproportionate to the amount of tax at stake.
- Random enquiries mean no one is immune and those with a relatively small income/profit can be targeted
- An investigation can cost many times more than the cost to join our fee protection scheme
- Directors’ private returns if prepared by us, are included in our scheme
Once again we have chosen TaxSafe from CCH Fee Protection (formerly IRPC Taxation Services), as this product meets the demands and needs of our business clients who wish to protect themselves from the financial burden of a tax investigation. We consider CCH to be good value for money, because we believe the level of cover and terms and conditions provided are appropriate for all our clients. In addition they have an efficient claims process and their policy wording is clear and concise.
