Tax investigations are stressful, intrusive and expensive. The requests for information and documents usually take many hours to compile ready for onward submission to HMRC. Added to this there are follow up questions to which you are required to respond, potential meetings with Inspectors to attend followed by negotiations on settlement of the investigation!
A typical tax enquiry costs upwards of £5,000 to resolve and takes on average 24 months to resolve. As your advisors we are delighted to announce financial protection against the representation fees of such enquiries whilst you remain a client with the continuation of our Tax Investigations Insurance for another year. If selected for an investigation or enquiry, we will defend you in order to deliver the optimum result. In summary, if you subscribe to our Tax Investigations Insurance we will:
− HMRC has announced proudly in its most recent Annual Report that the number one objective for this year is to ‘maximise revenues due’ and to collect as much money as possible from investigation related activity.
During 2015/16 HMRC achieved record tax revenues for a sixth year running, including nearly £27bn from compliance activity. More of the same is promised, as one of HMRC’s key objectives for 2016/17 is to ‘maximise revenues due and bear down on avoidance and evasion.’
Some of the latest headlines about HMRC activity include:
− £7.3bn was secured from the 2,100 largest and most complex businesses in the UK, each with an annual turnover of £200m.
− HMRC continues to target SMEs and an Enterprise Data Hub (EDH) has been built to capture and analyse the information HMRC receives from third parties. This will enable tax investigators to be proactive in selecting suitable cases for enquiry, in addition to the enquiries which are chosen entirely at random.
− HMRC intends to make better use of the data it receives, particularly from companies that process card transactions. This will allow investigators to track sales of £400bn a year through the use of credit cards and the potential for any undeclared cash.
HMRC has become much better at collecting information and analysing it, which is helping it to deliver more tax each year. All information collated used to be stored in 11 separate data warehouses, making it difficult to cross reference and study. However, HMRC has now built an EDH to accommodate information in one place. The EDH can handle all types of data, including picture files, audio files, communications records and email. Making Tax Digital will increase the ability to access this information more quickly increasing chances to investigate anomalies and collect tax in real time.
As an additional benefit, we have also arranged for subscribers to receive 24/7 access to a business legal helpline. The helpline covers employment law, health & safety and commercial matters and is available 365 days a year.
Even with the increases suffered on Insurance Premium Taxes we have all experienced, we believe the annual cost of this insurance reflects excellent value for money. To subscribe, simply download and complete the response slip from our website at www.stanbridgeaccountants.co.uk/taxinvestigationinsurance/form and return with your payment by 31 May 2017 and you will be fully protected for the year ended 31 March 2018.
Director- Stanbridge Associates Ltd
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