The introduction of Self Assessment Tax returns give business owners the flexibility to voluntarily declare their tax returns, but it has also meant the HM Revenue and Customs (HMRC) impose higher penalties and tightly regulated investigations.
If you are selected for investigation you will be charged by your accountant to act on your behalf and given that investigations typically take two years to resolve costs can easily escalate into thousands of pounds. Find a representative that guarantees insurance protection against HMRC tax return investigations and you will be assured you will be covered at no extra cost.
At the end of each tax year HMRC identify a group of people to target and set about gathering information. These campaigns thoroughly investigate the financial position of individual companies and compare them against their Self Assessment Tax Return forms. Anybody found to have fraudulently filed their tax return to avoid paying what they owe will be subject to criminal proceedings. At the time of writing four convictions have already been awarded and a further 23 cases are awaiting court trial.
What is HMRC tax investigation?
If your business is chosen by HMRC to undergo a tax examination they will write a letter requesting you to supply them with the financial records of your business. It is advised that you do not send them anything or contact HMRC until you have consulted a professional tax investigation expert.
Once HMRC have had a chance to assess your financial records they will request that you attend a meeting with one of their inspectors. Other than a criminal tax investigation there is no legal obligation to attend the meeting with the HMRC and in the majority of cases there is no reason to. HMRC will not tell you that you do not have to attend and will try to persuade you that you must attend. We advise that you ignore their invitation unless the legal requirements stipulate otherwise!
It is highly advisable that you seek representation from a tax investigation professional. Without the help of an expert you are more likely to be charged with higher tax penalties and additional fees to pay to HMRC. With Gordon Ferguson’s insurance policy you be will saved the hassle of dealing with HMRC tax inspectors and will not end up with over inflated expenses.
Gordon Ferguson’s HMRC Insurance Cover
At Gordon Ferguson & Co we will negotiate with HMRC officials on your behalf so that you can concentrate on running your business and continue to live your life with unnecessary stress and pressure. We can also ensure that HMRC do not ask for documents they are not legally entitled to request. If you do have to pay tax penalties we will also calculate the fair and just amount payable. It is often the case that you don´t have to pay a penny!
Contact Ewan or Danny today to discuss our HMRC insurance policy which guarantees that you will be given full representation, dealing with all correspondence with HMRC officials and assessment of HMRC tax calculations and penalties.