Tax fee protection insurance helps cover your business when it comes to tax enquiries made by HMRC – this can also be known as a tax investigation service.
Tax fee protection insurance provides coverage in the event that there’s a check or dispute made at random by HMRC.
Having tax fee insurance is a great way to protect both your business and your clients against HMRC investigations.
It’s possible that HMRC could review your tax returns, VAT returns and accounts at any time. Although you might feel as though you’ve done nothing to provoke this to happen, most tax enquiries take place at random.
Why Has There Been an Increase in Tax Enquiries?
HMRC have recently set targets to reach, meaning they’re continuously investigating new ways to improve tax revenue.
All tax investigations start with a letter posted to your address from HMRC directly. Your company records will face varying degrees of scrutiny and the process of investigation will usually begin with immediate effect.
Communicating with HMRC can be difficult and time-consuming. Lying about your business’s tax affairs or destroying any evidence that might need to be required could land you in legal and financial trouble.
The potential to face serious penalties is highly possible if you were to communicate with HMRC in an untruthful manner. Luckily, LJS can assist you accordingly and give you any advice you may need.
One of the main reasons that there’s been an increase in tax enquiries is due to them wanting to check their levels of accuracy on tax returns, but there is a high chance that they will also check for no reason at all.
What Triggers a Tax Investigation?
Strictly speaking, nothing can trigger a tax investigation. HMRC are allowed to do checks at random on all businesses, making it even more important to make sure you’re insured.
Saying this, there’s a higher chance of your business being victim to a tax investigation if you file tax returns late, don’t pay tax on time and make errors that need correction by HMRC.
Should Your Business Have Tax Fee Protection Insurance?
Being the subject of an HMRC enquiry can be both daunting and stressful, but having insurance will help you feel more relaxed.
In recent years, HMRC has recruited over two thousand new compliance officers to help with achieving their goal of reaching ambitious targets when it comes to doing tax investigations.
It’s extremely beneficial to have both tax fee insurance and a professional account to deal with your business’s needs.
If you’re notified by HMRC that you owe unpaid tax, you can instruct your accountant to work on your behalf and help provide key information, hopefully resulting in getting the tax demand down.
Managing a business can be hard going as it is, so allowing us to take the stress away will help your business massively, allowing you more time to focus on other aspects of your work life.
Why Do You Need to Have Tax Fee Protection Insurance?
As we’ve mentioned, tax investigations are on the rise, so having the extra security of being insured can help give you peace of mind.
If you’ve been considering having an account to help handle your business’s tax affairs, now is certainly the right time to do so.
You could find HMRC asking for months worth of statements, tax returns and PAYE records, which can be extremely time-consuming, especially if they end up asking for additional clarification and evidence.
Tax Fee Protection Insurance at LJS
At LJS, we provide cover for your business with tax fee protection insurance, with the intent to get the best outcome possible.
We care about you and your business, so if you find yourself needing help, be sure to know that we can deal with everything on your behalf with correspondence.
We will speak directly to you over the telephone or in person if needed, along with communicating with HMRC as well as giving you our full support.
We have great knowledge within the industry and understand how much your business means to you. We aim to provide the best possible defence to help save your money.