HMRC Investigations

As HMRC start their investigations on business’s who have had coronavirus support, you need to know your rights and obligations if your business is picked out for a compliance check.

HMRC will be ramping up the checks and investigations for the next 6 years and have the right to enquire into any tax return, whether it be personal or corporation, to verify the figures and therefore the tax/national insurance liability.

During the pandemic, HMRC have received over 26,000 complaints in respect of the coronavirus job retention scheme and furlough claims, to which they must investigate each one.

The initial contact from the HMRC investigations team will in writing and you then have the opportunity to outline to HMRC why you think the compliance check into yourself or your business is unnecessary.

During the investigation HMRC may ask you to supply numerous documents to be sent over via email or Dropbox (a secure software to send large files or quantities). You can post the documents if you are not comfortable sending personal data through the internet, however it may be expensive to send the information and you will not receive the information back – so always make sure you send copies and not original documents. They may even ask to visit your premises to inspect documentation.

If you have chosen to take full advantage of our fee protection service, if HMRC contact you, we will deal with the investigation on your behalf. If you have not signed up to our fee protection service, unfortunately we will not be able to deal with any HMRC correspondence for you.

Fee Protection

We as your accountants hold a policy of insurance that provides cover for professional fees incurred for work undertaken on your behalf in respect of Tax Fee Protection Service.

Where applicable for companies, directors/partners (including spouses/civil partners) are included in the Tax Fee Protection Service, subject to the agreed external income limits.

Tax investigations can be costly and our expert support during any investigation process is not covered in your usual accountancy fees.

Investing a small amount into our Tax Fee Protection Service Policy now means that you will receive complete support if HMRC targets you.

We will manage your case from start to finish, reducing stress and providing peace of mind.

We have 4 types of fee protection, outlined below;

• Individual £7 + VAT per month / £84 + VAT annually

• Soletrader £7 + VAT per month / £84 + VAT annually

• Partnership £10 + VAT per month / £120 + VAT annually

• Limited £13 + VAT per month / £156 + VAT annually

If you would like to get in touch with the team to speak about anything outlined in the above, please contact the office on 01527 875752.

Adderley Hill & Co Team