Biz Tip Stocking Filler #5 - Tax Enquiry Insurance: Whats it About?

Christmas is a'comin, Christmas is a'comin, and here is our top biz tip #5:

You may have heard that HMRC are expected to massively increase the number of tax investigations they make, in a bid to reduce the tax gap. Small businesses can be an easy target, so we are suggesting that SME's take steps now to protect themselves financially from the Inspector's call.

The investigation insurance company, CCH, has already seen an explosion in new cases, with new claims up 82%* compared to the previous year and this is expected to ramp up even more in the next few months. Our own experience is similar.

Small businesses should follow five golden rules when the tax inspector calls:

• Challenge any part of the tax assessment you know is wrong

• Answer all correspondence from HMRC within their deadline – or fully explain why if you need more time

• Anticipate the inspector’s questions – if there is anything to declare do so early

• Ensure your tax advisor is experienced in negotiating with HMRC

• Appeal against any HMRC order to the independent commissioners within 30 days and go to the Tax Tribunal if you have a particular grievance

Any individual or business can see any documents / telephone recordings held on them by HMRC by calling the HMRC Data Protection Unit on 0191 225 7575.

And finally - ensure the business has tax enquiry protection insurance in place. This protects against the accountancy fees that can rack up, even for the smallest sole trader under enquiry. Unlike many accountants, TaxAssist Plymouth consider this insurance so important we ensure all clients are included on a practice policy at no additional cost.  (Beware of inferior freebies from membership of trade federations which have severe restrictions in place on when a claim can be made).


PS: SPECIAL FESTIVE OFFER

****We love online accounting so much, as a special Christmas pressie are including a full years Kashflow license at no extra cost throughout December for all new client sign ups****
*Just a few conditions apply, pls email for details