Small businesses are bearing the brunt of HMRC’s tougher approach to tax investigations.
HMRC’s tax receipts from investigations into small and medium-sized businesses have increased by 31% in the last year. “Compliance” investigations into SMEs raised £565m for HMRC in 2012-13, up from £434m in 2011-12.
Are you covered?
We are committed to providing our clients with the best tax investigation insurance cover available. And here’s a very good reason why…
HMRC decided to investigate a limited company client of ours that has fee protection insurance at a cost of £200 + VAT (which was the cost for 13 months cover).
The investigation delved into
- Their Limited Company ie the general background of the business and how it operates
- The company’s accounting systems and controls and its business records
- The relationship between the directors and the limited company
- The director’s private financial affairs.
The time costs involved in providing HMRC with information they required amounted to £1740,00. As I’m sure you’ll agree a rather large invoice to come out of the blue. Luckily they had our tax investigation service so this invoice was covered, resulting in a saving of £1540 for our client.
The result of this investigation was that nothing untoward was found and the company and private affairs are all above board.
If you have any concerns regarding HMRC investigations or would like further advice on our tax investigation service please get in touch on 01704 546000.