Tax Enquiry Fee Protection Service
What powers do HM Revenue & Customs (HMRC) have?
HMRC are able to visit business premises to inspect records covering all taxes including corporate, income, PAYE, NI, Capital Gains and VAT. They can now also issue written queries before you have even submitted your annual tax returns.
Can anyone's tax affairs be scrutinised by HM Revenue & Customs?
Anyone that pays tax can come under scrutiny. Every year, HMRC starts enquiries into thousands of personal and business tax returns and accounts. VAT and PAYE payments are also thoroughly checked. The aim in every case is to collect more tax.
I've done nothing wrong, why should I worry about a tax enquiry?
Most enquiries are generated by computer "risk profiling" and many are selected completely at random. As a result, HMRC sometimes picks the wrong targets. Even if you've done nothing wrong, the taxman won't give up and still try hard to find errors.
How much could a tax enquiry cost me in professional fees?
The questions asked by HMRC are usually very detailed and time-consuming to answer. The costs of defending you can easily run into thousands of pounds, even if little or no extra tax is paid at the end of the enquiry. These costs are not covered by your normal annual fees.
Is there anything I can do for peace of mind?
You can subscribe to the Campbell Dallas Tax Enquiry Fee Protection Service which will cover you for the work and costs of defending you in the event of a tax enquiry by HMRC.
What is the Tax Enquiry Fee Protection Service?
It is a Service set up by Campbell Dallas to protect clients from HMRC queries. For a small fee, clients can subscribe to the Service and obtain the benefits described below. The Service is backed by an insurance policy that Campbell Dallas has arranged through Taxwise. Under the policy, Campbell Dallas can claim professional costs incurred defending clients in the event of a tax enquiry.
What are the main benefits to subscribing clients of this Service?
- Campbell Dallas will defend you should you receive any correspondence or visit from HMRC.
- The potentially high costs of professional fees for that defence will be claimed under our insurance policy.
- It will not be necessary to agree to unreasonable tax charges by HMRC because of concerns about professional fees.
- Unlimited free access to helpful Qdos Employment Law and Health & Safety advice lines is included in the cost. Advice can be obtained on any problems that might arise in these complex areas. This can be a very valuable service to many clients.
Who provides insurance cover to the Practice?
Insurance cover is provided by Taxwise Services Limited, one of the top companies in this field. Taxwise have many years experience of providing insurance to cover professional fees arising from HMRC enquiries. Taxwise Services Limited is authorised and regulated by the Financial Services Authority under reference number 304970. The policy is underwritten by Irwell Insurance Company Limited (FSA reference number 202897).
What is covered by the Service?
You will be fully protected by the Service and the practice will claim under an insurance policy which provides for up to £75,000 of professional costs, in the following circumstances:
- Dealing with any correspondence from HMRC;
- Attendance at any meeting with HMRC;
- Appeal to the First-tier Tribunal or Upper Tribunal.
What is not covered?
Some costs will not be covered under the Service, including the following:
- Routine compliance work, e.g. preparing your tax return;
- Overseeing HMRC whilst they review your tax return;
- Outstanding taxes, penalties, interest or any other amounts dues to HMRC;
- Defence of criminal prosecution cases or serious fraud enquiries;
- Fees relating to pre-existing tax enquiries.
Each subscribing client will receive a detailed Summary of Service setting out the benefits and limitations of the Service. If you would like to see a copy of this brochure before subscribing, please let us know.
If you need any more information, please call your usual Campbell Dallas contact and ask about our Tax Enquiry Fee Protection Service.