Tax services

Tax Investigation Scheme

With the Government facing high levels of deficit, HMRC are currently conducting a record number of tax investigations and compliance checks, which means businesses are at risk of a tax enquiry at any time – even if you’ve done nothing wrong.

How long does an HMRC enquiry last?

An enquiry by HM Revenue & Customs can be a serious disruption to your business and may take a long time to resolve – up to eighteen months on average for a Full enquiry. We provide a Tax Investigation Scheme for our clients, that will cover our fees for conducting all the work necessary in negotiating a settlement with HMRC, should you be unfortunate enough to receive an aspect enquiry or a full tax inspection.

As accountants, we’re uniquely positioned to advise and support our clients through an HMRC investigation, handling correspondence and acting as your representative in meetings, and even through the appeal process to the Tax Tribunal.

How much does an HMRC enquiry cost?

The average cost of a tax investigation has risen significantly over the last few years, as HMRC attempts to recoup losses and shrink the tax gap. If you are investigated by HMRC, you can expect to pay over £5,000 in accountancy fees for the advice and support you will require to bring the enquiry to a resolution. This doesn’t include the amount of tax owed or any penalties that may be incurred. Recent figures show that the average amount lost by small businesses and individuals who come under investigation by HMRC has risen to £18,400.

What is the Tax Investigation Scheme?

Our Tax Investigation Scheme provides protection from the high cost of professional advice to resolve the enquiry in a mutually satisfactory way. For just:

  • £342 + VAT per annum for a limited company;
  • £185 + VAT per annum for a sole trader or property business; or
  • £85 + VAT per annum for an individual,

You will be covered for our professional audit fees, ensuring you receive the support you need throughout the duration of the enquiry, without worrying about the cost.

Our Tax Investigation Scheme is backed by an insurance policy we have taken out in our own name with Markel Tax and protects our clients who suffer a tax enquiry. We will defend you if and when you are selected for a tax enquiry, and the potential high costs of professional fees will be claimed under our insurance policy. Markel Tax are committed to working in conjunction with us, thus ensuring your interests are fully protected.

Our business accountancy clients will also have access to one of the premier business support helplines in the UK, which can save a great deal of time and money by providing guidance in the areas of Company Law, Employment Law, Landlord & Tenant and Health & Safety – and all at no extra cost.

Get in touch to find out how our Tax Investigation Scheme could protect you and your business from the potentially high cost of an HMRC enquiry. Call 0114 274 7576 and ask for our Director of Taxation, Alex, or email alexandra.higham@knowleswarwick.com

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