The Importance of Fee Protection

Over 250,000 investigations are carried out by HM Revenue and Customs (HMRC) every year. This is a staggering amount and something that some people may not be aware of. Investigations are chosen at random as well as for a specific reason and the penalties incurred can potentially end up doubling your tax bill. The investigations can be aimed at an individual taxpayer or an entire company. We can help you to deal with an investigation and offer insurance to cover our costs, known as Fee Protection. Here we discuss the importance of Fee Protection and the key benefits it provides.

What is Fee Protection?

Fee protection (also known as tax investigation protection) is a sensible precaution against the increasing number of HMRC enquiries and covers our professional fees for dealing with a tax investigation on your behalf. HMRC investigations can be a real headache to a business owner or an individual and can end with a large tax bill.

Even if the HMRC investigation does not result in any additional tax being paid, Fee Protection is designed to limit the interruption to your business by covering the accountancy costs.

Every taxpayer is at risk of an investigation and unfortunately, those who believe they are paying their taxes correctly and filing their tax returns on time are not exempt from the process. HMRC aim to routinely investigate the PAYE and VAT records of a business every 3 to 5 years as a matter of course.

What are the potential penalties of a tax investigation?

There are various penalties that HMRC can impose once an investigation has taken place. As well as having to pay the tax stated, you can also be charged additional fines up to the value of the tax. This, in effect, can lead to doubling your tax bill. Interest on the late payment will also have to be taken into account. Therefore the investigation can lead to a substantial bill at the end of it.

What are the key benefits of Fee Protection?

Peace of mind

Having the insurance in place can give you peace of mind that if an investigation takes place, you will be able to let us deal with this on your behalf and minimise the potential impact.

Ongoing support

You will receive a fast response from our team who will be on hand to help you throughout the entire process and answer any questions you have.

Extensive expertise to hand

We have extensive experience with HMRC tax investigations, understand the process thoroughly and therefore can help minimise the time and costs as much as possible. We will also ensure that HMRC do not overstep their authority.

Help control costs

If you or your business is selected by HMRC for tax investigation there is no time limit and even an enquiry for a small firm can take several months, which means the costs of dealing with the enquiry build up. Having Fee Protection in place can help control costs as you know the accountancy fees for dealing with the enquiry are covered by the insurance.

Save valuable business resources

Once an investigation is underway, the amount of information HMRC will require is extensive. Getting the information together can be time-consuming as well as potentially expensive. Having an experienced accountant by your side can help the process go smoother, saving you valuable time and allowing you to focus on the day to day running of your business.

How to arrange Fee Protection

To arrange cover the Wright Vigar team are here to help. Anyone can be subjected to a HMRC investigation and although we cannot prevent the investigation taking place, we can help you to achieve the best possible outcome. We will also provide advice and support throughout the entire process. For more details on how we can help you cover the costs with Fee Protection, ask your usual contact at Wright Vigar or email website@wrightvigar.co.uk.