Comprehensive Tax Investigation Insurance Service

With the rise in time-consuming and costly HMRC tax investigations, ensure your protection for any potential HMRC actions.

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With an estimated tax gap of around £35.5 billion, reflecting the disparity between what HMRC should collect and what it currently does, HMRC conducts investigations across various tax categories. Small businesses and individuals contribute to over half of this gap. It's noteworthy that anyone, even those fully compliant, can be randomly selected for an investigation.

Utilizing tax investigation insurance (also referred to as HMRC Investigation Cover or Fee Protection) provides protection against professional costs arising from investigations into various aspects of your personal and business tax affairs.

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What Occurs if HMRC Initiates an Investigation into Myself or My Business?

If HMRC opens an investigation into your tax affairs, you are obliged to provide information and liaise with HMRC throughout until HMRC are satisfied that you have paid the correct amount of tax. This work is best dealt with by your accountant or tax adviser, and the fees associated with representing you in an enquiry are due from you or your business, and not met by HMRC. Tax investigations can be onerous and take months or years to bring to a close.

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Why is tax investigation insurance important?

Reduce Financial Risk

Our tax investigation insurance provides coverage for you and your business, extending up to £100,000 in professional fees.

Professional Representation

Our team of chartered tax advisers and chartered accountants, experienced in dealing with HMRC enquiries will represent you throughout an enquiry. We’ll meet and correspond with HMRC on your behalf and ensure everything is completed in a timely manner.


Summary of Benefits of Tax Investigation Insurance

Here are examples of what our tax investigation service offers:

  • Fully funded professional representation and advice (up to £100,000 in fees) throughout an HMRC investigation
  • All meetings and correspondence with the tax inspector handled by chartered tax advisers and chartered accountants experienced in dealing with HMRC investigations
  • Cost savings – ensuring the correct amount of tax is paid, negotiating with HMRC to minimize any proposed penalty charges
  • Peace of mind – knowing that your appointed accountants and tax advisers are handling your case

What taxes are covered by tax investigation insurance?

  • Corporation tax self-assessment
  • Income tax self-assessment
  • PAYE P11D
  • National insurance
  • Construction industry scheme
  • IR35
  • VAT
  • National minimum wage
  • VAT visits
  • Capital gains tax

For further details on how our tax investigation insurance can benefit you and your business, reach out to a member of our team by calling +92 302 4012116 or emailing contact@leewopconsultancy.com.

FAQs

Am I at risk of an HMRC investigation?

Any taxpayer, whether an individual filing a self-assessment tax return, a sole trader, partnership, or company, can be chosen for an investigation. HMRC utilizes advanced analytics software to pinpoint taxpayers for investigation, with some selected at random.

I’ve never needed this service before, so why now?

Tax Investigations are on the increase. HMRC has spent over £80m on a new super computer specifically to identify businesses and individuals who are identified as having potential tax discrepancies.

Why might HMRC investigate me if I have nothing to hide?

HMRC's focus is on collecting more tax:

  • £35.5 billion - the estimated gap between what HMRC should collect and what it currently collects
  • £26 billion - the additional annual tax income that HMRC aims to collect
  • £80 million - the amount spent by HMRC to develop a supercomputer that monitors your digital footprint for potential underpaid taxes

Could I not respond to the investigation myself?

HMRC tax investigations can be stressful and time consuming. They will often require technical knowledge of a chartered tax adviser or chartered accountant to resolve any items in dispute. You will need an experienced representative looking after your best interests during an enquiry; to help ensure you do not pay more tax than is necessary; and to bring the enquiry to a swift close.

If Leewop has handled my returns, why might there still be an investigation?

Some individuals and businesses are selected for investigation entirely at random, often resulting in no additional tax or penalties. Additionally, certain aspects of tax legislation are open to interpretation, with some tax rules being complex. If a tax inspector chooses to interpret the law differently, it can be advantageous for them and not necessarily for the taxpayer.

Transitioning to Leewop from your current accountant is a swift and straightforward process.

Leewop is a prominent accountancy practice in the UK, catering to clients nationwide. Regardless of your location, we are here to assist you. We will allocate an accountant to help you grow your business and enhance its efficiency. Contact us to discover how we can assist you today.

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