HMRC tax investigations are on the increase.
£34 billion – the estimated tax gap between what HMRC should collect and what it does collect.
£26 Billion – the additional amount of annual tax income that HMRC are targeting to achieve through compliance activity.
£80 Million – spent to develop strategic risk database that automatically generates tax enquiries.
HMRC are proactively targeting individuals and businesses using sophisticated software that has been specifically developed to search trends, indicators and behaviours and analyse in minutes. Data that doesn’t cross match can automatically initiate an enquiry. This software combined with wider powers and increased targets means that your chances of being investigated are rising.
What does this mean to you?
Tax investigations are time consuming, stressful and costly. Investigations can last for many months. During this time you could find yourself incurring accountancy fees as well as having to deal with costly business disruption and probing questions. Even if you’re found to owe nothing you will still have to pay your professional representation fees.
What can you do to remove the risk?
For a modest annual fee you can safeguard yourself from the cost of the professional fees associated with a tax investigation.
How does a fee protection service work?
In the unfortunate event that you are selected for investigation you can relax safe in the knowledge that there will be no professional fees to pay.
The service covers up to the equivalent of £100,000 towards accountant/tax advisors’ professional fees resulting from an HMRC Enquiry.
At McPhersons, we encourage all clients to take up our fee protection service. For a modest, interest free, monthly fee, they benefit from professional representation on all
matters relating to the investigation, ensuring that the enquiry runs as smoothly as possible and providing them with peace of mind. We also deal with the insurers on their behalf. Benefits include:
- McPhersons have the expertise and experience in dealing with HMRC
- Peace of mind that the experts are dealing with HMRC on your behalf
- Dealing with HMRC on your own could make matters worse
- Early intervention can lead to early resolution
- Additional tax due can be avoided or mitigated
Anyone can be selected for investigation, a business, director and individual tax payer. Contact us on 01424 730000 or firstname.lastname@example.org for more information.