No one wants a Tax Investigation.

No one wants a Tax Investigation.

It is true that as business owners we don’t want HMRC asking awkward questions and taking up our precious time by visiting us on a routine (or not!) compliance visit. 

This week two of our clients have been subject to compliance visits from HMRC, one for PAYE and CIS, and the other for VAT. Understandably, our clients in both cases were worried by a visit from HMRC and needed our support from start to finish.

PAYE Investigation

In the case of the PAYE compliance, which included CIS, we were able to speak to our client before the meeting, attend the meeting along with our client, and reply to HMRC’s request in order to close the enquiry. We dealt with the issues and questions raised in the meeting successfully and HMRC could see that we had a good handle on our client’s business. They have now closed the case without penalty or further tax charge.  Our client was very happy that we were able to attend and support them at the meeting as it gave them extra peace of mind.

VAT Investigation

The VAT visit was very similar. We briefed our client before the meeting and attended the meeting with the VAT officer. One item was picked up by HMRC and a small adjustment will be made on the next return. In this case HMRC were complimentary about our business set up and the service that we provide our client, especially in understanding the business from the client’s point of view. This client is also really pleased with the service and were reassured by the fact that we were able to attend the meeting and deal with any questions that came up.

We have you covered

We insure ALL of our clients to cover our fees for dealing with HMRC from start to finish in these situations.  We often have clients tell us that they are covered by The Chamber of Commerce or The Federation for Small Businesses, however the cover from both organisations does not allow us to deal with any investigation that may occur, and so our support is limited. It is for this reason that we took the decision to fully cover our clients for no additional charge.

We appreciate that no one wants a Tax Investigation, however if a client does have an investigation it is really important that we are there, as we can help the client to deal with HMRC effectively. In both cases this week HMRC didn’t find anything of significance and both of our clients were very happy with our service. They were especially happy that our fees for assisting with the visits are covered by the insurance policy benefit that we have taken on their behalf and that there was no extra cost to them.

4 thoughts on “No one wants a Tax Investigation.”

  1. Paul, the FSB offer tax investigation insurance as part of thier membership. The FSB will pay any cost incurred by the member in respect of charges thier accountant raises. In short we do not restrict your involvement and we cover your costs.

    If HMRC wish to pursue we cover all cost and will represent the member in court in aspect or full HMRC investication up to £100,000

  2. Absolutely no one wants a visit by HMRC unannounced or otherwise or VAT inspectors although run together now by HMRC so even more terrifying. That’s why we all need good accountants and then can sleep well each night. CIS is a nightmare and has changed so much over the years. I had no idea that you could insure against such things and what a great service you offer your clients. I wish I had spoken to you years ago but Gary has had the same accountant since first being a subcontractor for Camflat as a teenager many years ago. He has in recent years retired but stuck with the firm as some of the employees remained with the new firm and Gary is very loyal. I have had many discussions with the CIS people and filling in those dreaded monthly forms and hated them as in the last year or so have stopped employing people. Gary was 60 in October and so we are winding down now otherwise I would have changed to you in a heat beat. How many 60 year old roofers do you know ???? It is a young mans game for sure and have no idea how he does what he does He certainly doesn’t need a gym membership !! lol !!
    On another note entirely Newmarket Lions [ like Round Table and Rotary ] a charitable service organisation of which is am PR Officer have recently had to become a CIO and are now governed by The Charities Commission. We need to get the end of year accounts signed off [ our treasurer was originally told we needed them audited but after a little more delving it seems a book keeper or similar would suffice ] If I was to drop off the sheet of figures could you or possibly an office junior maybe look them over ? We have lost our two big fundraisers so turnover is very little and profit even less so there isn’t much to look at.
    I know I have a nerve to ask such a favour and of course we are willing to pay it’s just that we don’t have masses of funds right now and although are starting to build events etc up it all takes time.
    None of the members [ we have lost some of those too in recent years and down to eight people ] have any contacts and if you could oblige we would be most grateful but totally understand if you do not have time or don’t want to. I did ask jade to have a word but you were away and it coincided with her dreadful ordeal and the robbery and of course had other things to deal with.
    Have a great Christmas with the family [ Jade is lovely and such a talented singer ] and best wishes for a happy healthy and successful New Year in 2020.
    Love Christine xx

  3. The FSB and Chamber of Commerce do offer investigation insurance for a fee and ours is free.
    Also The schemes that both the FSB and Chamber of Commerce offer men that we would probably not be involved with the investigation and a reluctance to pay our fees to provide information. As a company we felt that this was not acceptable for our clients.

    We do believe that the FSB and COC cover is worth having if you are not a client of ours.


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