Tax Investigations

Receiving a tax investigation letter or notification is every taxpayer’s biggest fear, but with timely advice, most matters can be resolved effectively.

Our great people have a long track record of representing our clients in some of the UK’s most significant cases, as well as helping them with the day-to-day enquiries that HMRC sends out.

With the UK tax gap continuing to grow, HMRC continues to be extremely active and has launched a number of campaigns against various groups to recover outstanding liabilities, alongside its regular series of random checks.

That’s why we offer a dedicated Tax Enquiry Fee Protection Service to ensure that you have the support you need to resolve matters effectively.

What is the Tax Enquiry Fee Protection Service?

This is an insurance-backed service that protects you from accountancy fees associated in dealing with any HMRC enquiry or dispute.

Immediate professional representation is essential in successfully and quickly dealing with HMRC enquiries, the cost of which is not included as part of your annual fees.

Could you be the target of a HMRC investigation?

The current estimated UK tax gap is £46.8 billion. This is the difference between what HMRC should collect and what it does collect.

To ensure tax compliance and to close this gap, HMRC undertakes tax and VAT investigations. HMRC uses advanced technology to cross-reference data from a wide range of sources.

This means that even if your returns are fully compliant, discrepancies or patterns can still trigger an investigation.

HMRC is understood to use the following sources of information to launch enquiries and compliance checks:

Filing a late tax return
Errors that require correction
Regular dealing with cash
Whistleblowing and tip-offs
Working in a targeted business sector
Data from banks
Land Registry records
Visa and Mastercard transactions
VAT
Online marketplaces
And even social media feeds

Given the risks involved, be proactive and protect yourself by investing in tax investigation insurance.

How much could a HMRC investigation cost?

An investigation can stretch from months to years, often resulting in significant additional fees, running into many thousands of pounds, and emotional strain.

Whether you are an individual or running an organisation, an investigation can consume valuable time and cause significant disruption.

Don’t wait for the letter to land, let us safeguard you now with proactive advice and the right level of insurance to meet your future needs.

Our tax investigation service: Your first line of defence

Our service provides expert representation if HMRC opens an investigation into your affairs.

Backed by an insurance policy covering up to £100,000 in professional fees, we help alleviate both financial pressure and stress, giving you complete peace of mind.

It ensures you are protected in relation to compliance checks, visits and investigations started by HMRC regarding compliance with:

Corporation Tax Self-Assessment
Income Tax Self-Assessment
PAYE
VAT visits
National Insurance
Construction Industry Scheme
IR35
Stamp Duty Land Tax
Employer Compliance Visits
Check of Employer records
Interventions
Capital Gains Tax
National Minimum Wage
Gift Aid Legislation and regulations
P11D
Inheritance Tax
Child Tax Credits
HMRC use of pre-dispute information
Inspection powers under Schedule 36

What’s not covered

Fraud and criminal prosecutions
Deliberate omissions
Tax avoidance schemes
Tax penalties, fines, and interest
Enquiries initiated outside of the service period

Take the first step today and ensure you’re protected.

Case studies on previous tax investigations

Here are some examples of previous matters, where the Tax Investigation Service has helped:

HMRC opened an enquiry into a tax return. The enquiry lasted 2 years with various requests for information and data from the client. Fees were requested at several points and were authorised to enable their accountant to continue to deal with the enquiry on their behalf. The enquiry was concluded with no amendments being made to the return. Total fees on this claim amounted to £19,000, which were paid in full.

A VAT inspection was arranged with the client at their premises. Fees were authorised to allow their accountant to attend the meeting. During the inspection HMRC raised a concern about the systems used by the client to store their data. Following the visit recommendations were made as to how the client could make improvements. The enquiry was closed and all fees were paid for the visit and subsequent letters that their accountant had to send to HMRC. The fees totalled £3,400, which included travel time to the meeting and mileage costs. This was paid in full.

HMRC continues with their campaign, heavily scrutinising R&D claims. As a result of this, the number of enquiries HMRC have raised over the last financial year has seen a dramatic increase. Due to the complexity around the R&D rules, expert evaluation and representation is required. This results in the average cost of defending an R&D enquiry being in the region of £3,000, with some running to tens of thousands of pounds.

An enquiry was opened into a scaffolding company’s Construction Industry Scheme payments.

The enquiry lasted for six months and resulted in the client receiving a refund from HMRC. The total fees for their accountant to defend this enquiry were £2,400, which were paid in full.

How our tax investigation service works

If you receive an enquiry notice from HMRC, simply forward it to us. From there, we manage every aspect of the investigation, handling all correspondence and negotiations.

You’ll incur no additional professional fees while we work to resolve matters as swiftly as possible and there is no excess that needs to be paid for work to commence.

Act quickly, time is critical once HMRC makes contact.

Helping you achieve great results

Our friendly team’s in-depth knowledge of HMRC processes ensures investigations are resolved efficiently, minimising risk and exposure.

Whether you are an individual or an organisation, we are here to help you navigate the process with confidence.

Additional support – At no extra cost

As part of our service, you also get FREE access to a dedicated helpline for HR, employment law, and health and safety advice.

This includes:

Full telephone access to the UK’s leading advisors in these areas
A downloadable library of compliant forms, policies, employment contracts, risk assessments etc.
Detailed information and guidance on a range of HR/H&S related topics, including absence, termination, maternity, staff handbooks, flexible working, fire safety, DSE and manual handling, to name a few.