The poor economic climate has left the UK tax system short of its cash collection targets and the Government is using all means available to raise additional funds. This includes investing heavily in HMRC with the expectation that it will be able to raise additional revenue of around £7billion a year by 2015.
All businesses trading in the UK are required to submit a Self Assessment return to HMRC each year, and every one is an opportunity for HMRC to launch an investigation. If this happens to you, it can be very time-consuming to go through and it is in your best interests to have an expert on your side to handle the intrusive questions.
Tax Investigation cover is available to individual businesses, or on a scheme basis to Accountants, trade bodies or associations:
• Full Enquiries, where all business books and records can be examined.
• Aspect Enquiries, where only information relating to certain boxes on your tax return is involved.
• IR35 status disputes (provision of services through intermediaries).
• PAYE compliance disputes.
• VAT disputes.
• Schedule 36 Enquiries (new inspection and information powers granted to HMRC from 2008).