HMRC has recently expanded its compliance and enforcement teams as part of its commitment to ensuring the UK tax system is fair and effective (see here). With this, we’ve seen an increase in the number of tax enquiries being opened across all business sizes. These checks are a normal part of the process but they can require time, documentation, and the support of your accountant to respond thoroughly.
What Happens During an Enquiry?
We recently assisted a client whose corporation tax return was selected for a full HMRC enquiry. The review involved detailed questioning and requests for supporting documents, receipts, explanations of expenditure, and line-by-line clarifications.
While the return was filed correctly, HMRC’s queries still required us to spend around 20 hours preparing a full response. From start to finish the process took over 6 months. If the client hadn’t been subscribed to our Tax Enquiry Fee Protection Service, they would have incurred over £3,000 in additional fees for our time.
You can read about our clients experience on our testimonials page.
HMRC’s Thorough Approach to Tax Reviews
Enquiries aren’t necessarily triggered by mistakes. HMRC uses a sophisticated system that identifies returns for review based on a range of factors, from industry sector to data patterns. This is part of their wider responsibility to ensure accuracy and transparency across the tax system.
The key is to be ready to respond efficiently, accurately and clearly if you’re contacted.
A HMRC enquiry doesn’t have to be stressful especially when you’re supported by a team that can handle it on your behalf. With our Tax Enquiry Fee Protection Service, you’ll know that we can step in immediately and respond professionally, without adding extra costs to your bill.
What Our Tax Enquiry Fee Protection Service Covers
Our service gives you the reassurance that if HMRC does open a check, we’ll manage the response and represent your business at no additional cost to you.
- The service is backed by an insurance policy.
- It covers up to £100,000 in professional fees charged by Venn Accounts for dealing with an enquiry.
- It applies to a wide range of HMRC checks: Corporation Tax, PAYE, VAT, CIS, IR35, National Minimum Wage, Gift Aid, Schedule 36 notices, and more.
It’s important to note: this service only covers the professional fees charged by Venn Accounts. It does not include any additional tax liabilities or penalties that may arise as a result of an enquiry or things like legal fees that may be required.
Want Peace of Mind?
Contact us about adding this protection to your package. It’s a simple, proactive step that ensures your business has the support it needs just in case HMRC comes calling.
