Tax Investigations Fee Protection Service

Our Tax Investigations Fee Protection Service ensures our fees are covered, while reducing the stress, disruption, and time involved.

Tax investigations can happen to anyone. Whether you are an individual or in business, you can be randomly chosen by HM Revenue & Customs (HMRC).

HMRC are targeted with closing a £35 billion tax gap – the difference between the tax owed to HMRC and what is actually paid. They know that small businesses and individuals account for over half of this amount and this is where they are focusing their efforts. They open investigations on a random or selective basis to see if a taxpayer, like you or your business, has paid the right amount of tax.

An additional pressure for the Government is the sizeable deficit created by the economic impact of the Coronavirus pandemic. As a result they are tackling the tax gap even more aggressively than before and if you have a business that has furloughed staff, you are more likely to have an HMRC investigation than a business that has not claimed under the Coronavirus Job Retention Scheme.

It is well publicised that the Government is focused on identifying misuse of this scheme. HMRC have received over 30,000 reports of misuse and have issued thousands of enquiry letters checking that furlough claims have been made correctly. The suggestion is that this is just the tip of the iceberg.

Fiona Fernie, our Head of Tax Disputes, says: “HMRC has started investigations into companies and individuals that it believes have fraudulently made claims under the Coronavirus Job Retention Scheme, which had paid out more than £68bn by August 2021 (just before the scheme closed). The Government intends to claw-back as much money as possible from those whose claims were wrong. This is likely to continue for several years. Nobody who has received these grants should be complacent as the proposals for claw-back are not confined to instances where the claim was fraudulent – it applies to cases where there has been a lack of proper care as well."

Shielding you from the stress and uncertainty created by an HMRC enquiry

HMRC investigations can be disruptive and intrusive. They can also be a long and costly process, sometimes lasting a year or more.

Whether or not there is any additional tax to pay on completion of the enquiry, there is always a cost associated with handling the investigation and the related arguments presented to HMRC on your behalf as the taxpayer.

We offer a Tax Investigations Fee Protection Service to our clients, which varies in price depending upon circumstances, but for private individuals the cost is generally less than the professional fees for one hour of partner time. If you were to join this, our costs would be met in the event of an investigation, subject to any limits due to the type or nature of the enquiry, helping to shield you from the stress and uncertainty brought about by an HMRC enquiry.


Resources

 

Service Overview

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Frequently Asked Questions

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Inclusions and Exclusions

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Point of contact

RS332_Susan Spash - Partner-lpr
Partner

Susan Spash

RS789_Fiona Fernie - Partner 8-scr
Partner

Fiona Fernie

Would you like to know more?

If you would like to find out if you are eligible for this service, please get in touch with your usual Blick Rothenberg contact or complete the form.

Or you can email us at tifps@blickrothenberg.com.

 

Tax Investigations Fee Protection Service