Professional Fee Protection Cover

HMRC have the power to investigate whoever and whenever they see fit.  Our blog article “When the taxman calls” details the types of taxes HMRC will investigate and what you should expect from a visit.

As your accountant we can reduce the risk of an enquiry when we prepare your accounts by looking at unusual costs, considering margins and looking at the income you take for reasonableness. HMRC have confirmed that they do a risk score on accounts and that a variety of other factors come together to increase the likelihood of an enquiry. One such item is the late submission of accounts and tax returns, and the later the submission the higher the risk.

Types of enquiry:

Aspect enquiry – is about a limited number of issues, sometimes one item. This could be because HMRC think that a particular expense category is high and they wish to request a breakdown.

Full enquiry - an in-depth examination into all aspects of your tax return. It can be on your return, your company’s return or both. All supporting accounts and records will be required for the enquiry, which can take between 6 months and 4 years, although enquiries lasting over 18 months are rare. A full enquiry can be random but may be triggered by some external information received by HMRC. Disgruntled ex-spouses or employees are sometimes a cause although HMRC will never disclose why the full enquiry was started. Full enquiries can also be very costly in terms of accountancy fees.

An enquiry into your business can cause huge disturbance and possibly lead to loss of   income as well as being extremely time consuming and costly.  If an inspector believes he has any evidence at all that demonstrates that you have underpaid your tax bill, then it is possible that you will be required to pay the additional tax unless you have the evidence to demonstrate otherwise, as well as the costs incurred by your accountant dealing with the enquiry.

We offer a tax protection scheme that covers accountancy fees up to £100,000 for work that arises in the event of a full enquiry and many types of aspect enquiries. The coverage can include aspect enquiry cover, VAT and PAYE compliance visit cover, pre-dispute cover, cover for business inspection notices and Director/Partner/Spouse and company secretary cover. By joining the scheme you will have peace of mind in the event of a HMRC enquiry and will be able to draw on the experience of specialists in the event of the enquiry covering unusual issues.

If you are a Limited company, partnership or sole trader then the subscription includes your business, you personally and fellow Directors and Partners as long as Ward Williams prepare the tax returns. The subscription is a one off annual payment, running from 1 April 2013. It is possible to join the scheme later in the year and the cost will be pro-rata.

You will shortly receive an invitation in the post to sign up for professional fee cover; we recommend this coverage for all our clients. The importance of having Fee Protection is only truly appreciated once a HMRC enquiry or investigation has taken place. The features and benefits of the scheme are set out in the details you will receive.

If you do not receive full details of the scheme, require a tailored quote, have any questions or wish to discuss in greater detail then please contact us:

enquiries@wardwilliams.co.uk  ·  01932 830664