CLOSING THE GAP
£35 billion is the estimated tax gap between what HMRC should collect and what it does collect. Small businesses and individuals account for over half of this tax gap, around £17.9 billion. To help ensure tax compliance and close this gap, HMRC undertake Tax and VAT Investigations.
WHY?
a) to reduce the deficit,
b) to make sense of the gap, and
c) to penalise those who’ve contributed.
HOW?
HMRC identify and target areas where they believe tax is at risk. They use sophisticated software to cross match a wide range of data sources, and any anomalies can lead to an investigation. HMRC then follow them up with an enquiry, but ultimately any HMRC return can be selected for an investigation.
TYPES OF HMRC ENQUIRY
• Enquiries that stem from the use of sophisticated software,
• Enquiries that result from HMRC actively encouraging members of the public to report taxpayers via their hotline,
• Random enquiries that HMRC carry out, as ultimately any HMRC return can be selected for an investigation.
UNFAIR ON THE TAXPAYER…
Quite often, such an enquiry is unfair on the taxpayer, as they have no additional tax to pay, yet still have to contend with the stress and uncertainty of an HMRC visit or investigation, as well as having to undergo the disruption that such an enquiry may cause.
And if this wasn’t enough, the taxpayer is strongly advised to engage expert professional representation to ensure a robust response is provided and the issue comes to an early resolution. This of course comes at a cost.
“A small retail business received a VAT visit followed by some written questions from HMRC, they had the support of their accountant throughout, right from the notice of the VAT visit. This resulted in a timely conclusion of HMRC’s enquiry and virtually no additional tax to pay. The professional fees amounted to £3,200. Fortunately, the business had subscribed to the Tax Investigation Service and these fees were met in full by the service.”
OUR TAX INVESTIGATION SERVICE CAN HELP…
Should you be one of the unlucky ones chosen by HMRC, we offer a Tax Investigation Service.
The service gives you professional representation and is backed by an insurance policy that provides up to £100,000 of professional fees.
THE AIM OF OUR SERVICE IS TO:
• Give you complete peace of mind,
• Minimise the stress and disruption of an HMRC investigation, and
• Save you money.
What’s more, you will be able to respond to HMRC allowing you the best chance to bring the matter to an early conclusion and mitigate any additional tax that may be due.
And for those of you in business and with employees, it gets even better. You can gain access to a dedicated team of HR consultants who can assist you in growing your business by providing proactive commercial advice regarding the managing and well-being of your staff.
PROTECT YOURSELF FROM THE RISK
INVESTIGATIONS TAKE TIME
PROBLEM: HMRC investigations are time consuming and can last for many months.
SOLUTION: We have the expertise and experience to deal with HMRC on your behalf, so that your investigation flows more smoothly, allowing you the best chance to bring the matter to an early conclusion. Our early intervention can lead to an early resolution.
INVESTIGATIONS CAUSE STRESS
PROBLEM: HMRC investigations cause stress.
SOLUTION: By engaging our professional representation from the outset, you can eliminate the stress factor from your investigation. We are the middleman between you and HMRC and the sole purpose of our service is to support you, protect you, and put your mind at ease.
INVESTIGATIONS COST MONEY
PROBLEM: HMRC investigations cost money. Throughout the course of your investigation, you will incur additional accountancy fees. These fees will still be due regardless of the outcome of your investigation.
SOLUTION: We will safeguard you from the cost of the accountancy fees associated with a tax investigation, so you can relax in the knowledge that there will be no additional accountancy fees to pay. Our service provides insurance backed professional representation for up to £100,000 of fees relating to your investigation.
TAX INVESTIGATION
WE MAKE IT A BREEZE
£100,000 indemnity with no excess for:
Any compliance check, visit (regardless of whether a dispute has yet arisen) or investigation started by HMRC regarding compliance with:
• Corporation Tax Self-Assessment
• Income Tax Self-Assessment
• PAYE
• P11D
• National Insurance
• Construction Industry Scheme
• IR35
• VAT
• National Minimum Wage
• Gift Aid legislation and regulations
Also includes:
• VAT visits
• Employer compliance visits
• Check of employer records
• Interventions
• Capital Gains Tax
• Any HMRC use of pre-dispute information and inspection powers under schedule 36
Book your free appointment with ISA Consortium
For more information and professional advice, please get in touch for a free appointment. We will discuss all the needs of you and your business, and head you in the right direction for future business .
All this and more
We offer all the above as part of our full Tax Services and Accounting and can also help you with Capital Gains Tax, Inheritance Tax, Retirement Planning, even filling out your Self-Assessment Tax Returns for you.
