Insights Tax Tax Investigation Fee Protection Service

Get all the latest Blick Rothenberg insights in your inbox. Sign up online at blickrothenberg.com/insights

©{Month, Year]. Blick Rothenberg Limited. All rights reserved. While we have taken every care to ensure that the information in this publication is correct, it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely. Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity.

16 Great Queen StreetCovent GardenLondon WC2B 5AH

+44 (0)20 7486 0111 email@blickrothenberg.com blickrothenberg.com

©{Month, Year]. Blick Rothenberg Limited. All rights reserved. While we have taken every care to ensure that the information in this publication is correct, it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely. Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity.

16 Great Queen StreetCovent GardenLondon WC2B 5AH

+44 (0)20 7486 0111 email@blickrothenberg.com blickrothenberg.com

Fiona FerniePartner Private Client

+44 (0)20 7544 8994 fiona.fernie@blickrothenberg.com

Susan SpashPartner Private Client

+44 (0)20 7544 8991 susan.spash@blickrothenberg.com

1. Can anyone’s tax affairs be scrutinised by HM Revenue & Customs (HMRC)?

Anyone who submits any sort of tax return can come under scrutiny. Every year, HMRC start enquiries into many thousands of personal and business tax returns and accounts. VAT and PAYE payments are also thoroughly checked. HMRC is projected to have collected a total of £634.7 billion in taxes in 2019-20, an increase of 2.3 per cent since 2018-19.

2. I’ve done nothing wrong, why should I worry about a tax enquiry?

Most tax enquiries are generated by computer ‘risk profiling’ and many are selected completely at random. As a result, HMRC may choose to investigate someone whose tax affairs are in order. Even if you have done nothing wrong, HMRC will be basing their enquiry on information they hold and may start from the position that there is an error.

3. I need to reduce my spending in the current economic climate. Why would I invest in this service?

Not paying for the Tax Investigations Fee Protection service each year could be a false economy. The potentially high costs of arguing your case to HMRC in an enquiry will be much less affordable than the annual charge. One thing is certain: the current increased debt the Government faces at present is only likely to increase the potential threat of an investigation.

4. I don’t think I need this service. Why would you recommend it?

Like any other way you may plan to meet an unexpected expense, everyone hopes that they don’t need the contingency plan. However, when a costly enquiry starts, clients are glad that they’ve subscribed to the service, not only because they know that they will not face unexpected additional fees but also for the professional support and peace of mind of having their advisors deal with HMRC on their behalf.

5. I already have some protection through a trade subscription or policy. Do I need this service too?

The cover afforded by other types of protection may be limited in value and not as wide ranging as the service we offer. Such policies may not pay our fees to look after you and could instead require that you use their preferred provider - who doesn’t know you or your business - to deal with the enquiry.

6. How much could a tax enquiry cost me in professional fees?

The questions asked by HMRC are often very detailed and time-consuming to answer. The costs of dealing with HMRC’s questions and liaising with you can easily run into thousands of pounds, even if little or no extra tax is paid at the end of the enquiry. These professional fees are not part of the recurring compliance service and so will be in addition to the normal annual fees paid to us.

Tax Investigations Fee Protection ServiceFrequently Asked Questions