How we can assist with a tax investigation from HMRC


Mobile_250x250Tax investigations are expensive, intrusive and stressful. The cost of an enquiry can seriously impact your financial security, and your health!

No business is too small or too large for HMRC to challenge, but we are here to take the stress away, and give you peace of mind, starting from as little as 20p per day.

How do they do it?

HMRC uses a system called Connect. It’s designed to identify where too little tax has been paid.  It’s now responsible for selecting 9 out of 10 enquiries, and does this using technology to identify anomalies between such things as bank interest, property transactions and lifestyle indicators to decide which people to investigate.

How much does a tax investigation cost?

Even if HMRC agree that you’ve done nothing wrong, you still need to prove this, which is where we come in.

As we know your business inside and out it makes sense if we manage the investigation for you, and handle all communications with HMRC.  This can sometimes be a lengthy process, and could cost as much as £15,000!

Facts and figures

  • Small businesses like you represent 95% of all UK businesses and employ 14 million people in the UK.
  • HMRC’s tax yield from small business increased from £200m to £5.6bn last year.
  • In 2018/2019 HMRC collected £34.1 billion through tax investigations (an increase of 21.5% from 2017/2018)
  • The average cost of fees for an investigation are around £5,000 or more
  • A typical enquiry can take over 18 months to resolve
  • The number of Tax investigation insurance claims increased by 28% between 2015 and 2017

The solution

We are pleased to offer our Kinder Pocock Tax Investigations Service, which is designed to provide you with protection against the costs of an enquiry, and includes:

  • Covering the full cost of an enquiry, up to £75,000 of our accountancy fees.
  • Ensures you receive the best defence so that your tax position is protected
  • Enables us to challenge HMRC’s assertions and assumptions head on, including complex or technical tax cases
  • Handling all correspondence and interaction with HMRC, including attending any 1-1 meetings
  • Comfort and peace of mind that we will fiercely defend any enquiry into you or your business.
  • Most importantly your professional fees will be paid.

What you need to do now

You can sign up here for our tax investigation service.

Please also have a look at our Tax investigations service leaflet for more info.

As we feel it is important for all clients to have this protection in place, we are providing this protection for an affordable annual fee starting at £75 plus VAT for personal tax clients. 

Could this be you?

Example 1:

HMRC opened a full enquiry into a self-employed caterer.  The Inspector requested all of the books and records, and made further enquiries about the expenses claimed. We managed to lose the eqnuiry via correspondence alone, with no adjustments required to the return.  Yet fees still amounted to £2,000, covered by the tax investigations insurance.

Example 2:

HMRC opened an enquiry into one aspect of a business partnership’s tax return.  It only lasted 6 months, however it still cost £10,000 in fees, despite the return being 100% accurate.

Sign up now for our Tax Investigation Service here.

For further information please contact us by calling 01432 273400 or email sharon@kinderpocock.co.uk


We’re here for you

Please get in touch if you’d like any help with your Bounce Back or CBILS loan application

Please get in touch on any of the above, or if you’d just like a chat, or call the office on 01432 273400.

We’re all working from home now, but your message will be passed straight to the right team member.

If you’d prefer to book a time to speak to me, I’ve freed up more time in my calendar for 30 minute zoom calls.

Please find and book a slot here.

You can also call, text or WhatsApp me on 07813 303849.

 

Stay Strong. Stay Safe

 

Sharon