Why you need Tax Investigation Insurance.
How does Tax Investigation Insurance work?
In the unfortunate event that you are being investigated, it is recommended that you seek expert guidance from a tax specialist immediately; to assist in clarifying the issue highlighted and to help put together the relevant information to resolve the problem in a timely and professional manner.
Early professional intervention can lead to quicker resolutions, with tax payments being avoided or mitigated where possible. Tax Investigation Insurance allows you to access expert support throughout the investigation, provided by our personal and business tax experts.
The professional fees will be covered (to the equivalent of £100,000), and Harvey Telford and Bates will represent you in all matters – dealing with HMRC and the insurers so you don’t need to worry.
Additional benefits of the Tax Investigation Insurance include comprehensive support for Employment, Health and Safety, and HR, at no extra charge.
Why would businesses require Tax Investigation Insurance?
Even if an organisation has completed all the relevant preparation – prepared and submitted tax returns in time, calculated and paid the tax bill – you may still face a tax investigation.
Anyone can be selected for an investigation – a business, director or individual tax payer. Whilst you may have done nothing wrong, and may have a particular set of circumstances which justify something that may not be standard (relating to tax), you will still have to prepare a case to prove this.
HMRC are now proactively targeting businesses and individuals using sophisticated software based on trends, indicators and behaviours. The software automatically analyses the information provided and highlights individuals or organisations whose tax affairs may require further review.
Additionally, HMRC has also increased targets for the amount of annual tax income brought in through compliance activities (investigations), leading to increasing HMRC activity and consequently the chance of being investigated.
What are the potential impacts of a Tax Investigation?
If a potential issue is highlighted with your tax, HMRC will inform you of this immediately.
Tax investigations can last for months, proving to be stressful and time consuming, taking up valuable resources. In addition to the resources used, you may incur accountancy fees – something you will have to pay even if you’re found to owe nothing to HMRC.
With the right support, the impact of a tax investigation can be minimised. For businesses covered by Tax Investigation Insurance, you also have peace of mind that you can engage the support detailed above, provided by tax specialists, Harvey Telford & Bates Accountants.
If you would like to find out more about Tax Investigation Insurance (provided by Cromer TaxWise) please contact our team on 01743 462604 or email [email protected].