In the light of long standing pressure on HMRC to increase tax collection, it is expected by many commentators that HMRC will increase the use of risk-based approaches to reviewing income tax, VAT and corporation tax returns and accounts. Many commentators have suggested that this will result in increased enquiries and investigations by HMRC.
If HMRC decide to open an enquiry into your affairs, it will most commonly take the form of an “aspect enquiry”. This is simply an enquiry into one or more particular aspects of your tax return or accounts and may be comparatively simple to resolve. Alternative forms of enquiry can be more lengthy and consequently, more expensive to deal with.
It is important to bear in mind that an enquiry at any level will result in additional professional fees, irrespective of whether there is found to be any unpaid tax. Your professional costs may therefore exceed any additional tax liabilities.
In order to mitigate the effect of this, we offer a fee protection service to all clients. For an annual fee, this service will cover our costs for dealing with a qualifying enquiry.
Our fee protection service also covers VAT and PAYE reviews.
If you are interested in this service or require more details, please do not hesitate to contact us.