In 2016/17, HM Revenue & Customs (HMRC) secured a record £28.9bn of additional revenue through tax enquiries into businesses and individuals. The target for 2017/18 is even higher.
HM Revenue & Customs has spent years and £100m or more on a super-computer designed to identify those who may have paid too little tax.
Instead of relying solely on information provided by taxpayers via their returns, HMRC’s powerful “Connect” system now draws on information from myriad government and corporate sources to create a profile of each taxpayer’s total income e.g. DVLA, Ebay, Social networks, Land Registry, Companies house, Bank Accounts etc. Where this varies from the information provided by the taxpayer, the account is flagged and could be subject to further investigation.
For the first time, HMRC is also using these powers to warn individuals to check that they have not underpaid.
Our advice to you
If you are selected for a tax enquiry, we will always robustly defend you against unjustified questions by HMRC but please be aware that the detailed questions asked can often be time consuming to answer. The costs of responding to HMRC can be substantial even if no extra tax is payable.
Our normal annual fees do not cover the additional professional costs of handling tax enquiries and compliance checks. We therefore strongly recommend that you are protected against such unexpected costs by taking out Tax Fee Protection Insurance cover. You can view a sample Summary of Cover here www.qdosvantage.com/summaryofcover
An additional benefit is that clients of KMP Associates who need support on general legal issues and the complex areas of Employment Law and Health & Safety can obtain complementary expert advice on such issues.
To find out more and take out cover please click on this link to Fee Protection, where you will be taken to Qdos Vantages homepage detailing more information about policy cover and details of our insurer, Qdos are on hand to assist with any questions you may have and how to join our scheme. You can also contact your usual member of staff at KMP Associates to discuss the importance of Tax Fee Protection”.