Insurance is there to protect you in case of trouble: you get pet insurance in case your dog has an accident in the park, you get car insurance in case you have an accident on motorway, and you get tax investigation insurance in case HMRC raises an enquiry into you or your business.
Our Tax Investigation Service is an insurance policy taken out in our name with an organisation called Professional Fee Protection (PFP). By paying an annual fee, you’ll be covered for any professional fees incurred in case of an HMRC enquiry and have us beside you to give guidance and advice throughout the whole process.
No one likes to think they’re at risk of a tax investigation, but this protection could save you time, stress and thousands of pounds. Here’s how:
Enquiries are more common than you think
In the first quarter of 2021, HMRC opened 102,000 investigations into taxpayers. This is a 36% increase from the 75,000 enquiries the previous quarter, and that number is expected to only keep rising in 2022.
Why the increase in enquiries? It’s simple: HMRC has a revenue problem.
With a budget deficit of over £355 million and an overall national debt of £2.2 trillion as of 2021, the government needs to find a way to plug the hole left in their finances by the pandemic. Ramping up their tax enquiries is one way to do that.
They’re especially looking to crack down on claims for COVID support schemes like CJRS. HMRC estimates that as much as 10% of furlough claims in the past year are fraudulent, which makes businesses who took advantage of these schemes, even rightfully so, especially vulnerable to a tax enquiry.
Enquiries don’t just happen when you’ve done something wrong
You know you’ve not made a fraudulent claim. You’re working hard, building your business and paying what you owe to the taxman. But enquiries can happen anytime to anyone, even when you’ve not done anything wrong.
HMRC doesn’t need a reason to check your tax affairs. Most enquiries are generated by a computer “risk profiling” or even selected at random. This means, every year, thousands of enquiries result in no extra tax being charged.
An absence of fault doesn’t make the enquiry process any less stressful or expensive. The whole ordeal could take months and cost thousands of pounds in unexpected accountancy fees. That’s why we established this tax investigation insurance policy: to protect you from the unexpected and the unavoidable.
This policy was designed to protect you
Our mission at Tyrrell Accountants is to care for our clients the way they deserve. You want peace of mind knowing your best interests are always being looked after. PFP’s tax investigation insurance policy helps us do this.
Since they pioneered this service over 30 years ago, PFP has protected over 600,000 different businesses and individuals. And signing up today doesn’t just protect you from the future: it can als cover any enquiries into past tax returns, even ones filed before you started working with Tyrrel Accountants.
If you’re ready to safeguard you and your business against unexpected enquiries, reach out to Tyrrell Accountants today. We’re happy to answer any questions you have and talk more about the best option for your unique circumstances. But don’t wait: protection is only available from the date subscription payment is received, meaning it won’t cover any fees if you receive an enquiry letter before signing up.