Protect yourself against the cost of an HMRC enquiry before it’s too late.
“HMRC is continually finding new ways to target you using clever techniques and new technology. We are constantly vigilant and stay up to date with the latest advances, but you are still at risk of being investigated at any time. If you take advantage of our Tax Fee Protection scheme, our fees will be one less thing for you to worry about in a tax enquiry. We can defend you as long as it takes to achieve the right result.”
Phil Cottam, Tax Partner, Stables Thompson & Briscoe
Why is HMRC investigating?
The government needs to fill a black hole in the public finances via the tax system. To check if people are paying the correct amount of tax, HMRC selects taxpayers for investigation, either randomly or using information gathered via sophisticated technology.
How is HMRC obtaining their information?
HMRC now uses a database called ‘Connect’ to start more than 80% of tax enquiries. The system collects data from 30 different sources, including UK and offshore banks, Companies House, the Land Registry, estate agents, the DVLA and other licensing authorities, and social media.
The data can be instantaneously reviewed by more than 3,000 HMRC investigators to produce a financial fingerprint for any taxpayer. If there are any discrepancies between tax returns or business accounts sent to HMRC, a tax enquiry will follow as sure as night follows day. Tax enquiries started from ‘Connect’ have produced billions of pounds in additional tax over the last few years. Using ‘Connect’, HMRC can now target enquiries more accurately than ever before – but they still get it wrong sometimes. That’s why we will always challenge HMRC regarding their reasons for an enquiry when defending clients.
How is HMRC using this information?
HM Revenue & Customs (HMRC) is giving individuals and businesses a harder time by carrying out more tax enquiries and compliance checks.
- Selecting taxpayers for investigation at random or for no good reason
- Using wider powers to visit homes and businesses
- Charging extra tax, interest and penalties
- Allowing less time to pay any tax due
Anyone who pays tax can suffer an enquiry or compliance check by HMRC. If this happens to you:
- You will have to prove that HMRC’s suspicions are unfounded
- HMRC’s detailed and intrusive questions will take time to answer
- A lot of work will have to be done to respond to the questions asked
- The enquiries can drag on for months and sometimes years
- Professional fees of hundreds or thousands of pounds may become due as a result
How can we help you?
We provide a service to clients under which, in the event of an HMRC enquiry or inspection:
You will receive the best possible defence
You will not be charged for most professional costs incurred in your defence
You will not have to concede to HMRC’s demands because of financial pressures
By subscribing to the service, you will have the comfort of knowing that we can fully defend you at no extra cost if you fall under HMRC’s spotlight. Clients not taking advantage of the service will be charged for any additional costs arising from HMRC’s enquiries whether or not this results in extra tax being payable.
As an additional benefit, complimentary expert telephone advice can be obtained on:
- Employment law
- Health & safety matters
- General legal issues
- The advice can be very valuable, particularly to many business