The Government has charged HMRC to increase the UK tax yield by £24,500,000,000, yes that’s £24.5b!
The government has made investments into staff, nearly 5,500 more employees have been added to HMRC’s headcount to specifically achieve their target, and new IT processes have given HMRC more information to act upon.
Already more than £600m additional tax has resulted from targeted campaigns into specific industries, professions and trades such as medics, plumbers and electricians. Every few months HMRC publish exactly which further sectors they are going to target, and it is likely to be only a matter of time before they get to yours.
We at RS Partnership have recognised that it’s not only errant tax payers that get looked at, even honest law abiding ones are selected for one reason or another. It may be that your turnover has fallen a bit lately due to a spell out of work because of illness, or your gross profit has increased because you’ve had a particularly good project this year. These circumstances and more are ‘flags’ for HMRC to have a closer look at your accounts and tax return.
There is probably nothing amiss, but HMRC will still want answers.
At RS Partnership, we have had years of experience in dealing with HMRC on these types of occasion and know what to say, and what not to say!
On average, the cost of dealing with an HMRC Enquiry (Investigation in old money) is £5,000 and takes on average 19 months to conclude.
Our Fee Protection Service starts from as little at £75 plus VAT for a full year’s cover.
By choosing our Fee Protection Insurance you will have the comfort of knowing that RS Partnership’s fees for dealing with HMRC when they raise an enquiry into your tax and accounting affairs are fully covered.
Remember the Enquiry can start from a simply VAT or PAYE visit as well as a review of your accounts and tax return.