Fee Protection today keeps the taxman at bay
Average tax investigations now take THREE months
If you keep half an eye on what the taxman is getting up to these days, you’ll know that one of his favourite activities is subjecting businesses to tax compliance checks.
Last month we blogged about how HMRC raised an extra £9billion between 2011 and 2014 by ramping up the number of tax compliance checks it carries out.
We’ve now learned that the average length of investigations has risen as well. During 2013-14 the average length of time taken by HMRC to investigate ordinary taxpayers jumped to three months, up from 2.5 months the previous years.
That means, when the taxman comes knocking you can expect a good 12 weeks of hassle, expense and worry – it’s well known that HMRC’s database can generate false leads and lead innocent people and businesses to be wrongly accused of fiddling their taxes.
Of course, at THP we do everything possible to make sure your accounts are accurate and able to pass even the most intense scrutiny with flying colours. If you give us the right information, we create robust and accurate accounts.
Tax investigations have happened to many businesses, and they fall into two distinct categories.
- Businesses that do not have Professional Fee Protection Service
For these firms, a tax investigation is a nightmare. Either they have to spend hours and hours going through their accounts and paperwork to satisfy the taxman (not an easy task), or they have to pay full professional fees to their accountant to do the work for them. Even if the taxman decides their accounts are in order, they will endure many weeks of hassle before being landed with a large accountancy bill. Very few businesses let this situation happen to them twice.
- Businesses that do have Professional Fee Protection Service
These firms are either very wise, or could be described as ‘once bitten, twice shy’. They make sure they have Professional Fee Protection Service which covers all the work their accountant does when the taxman comes knocking. Many of our clients have PFP, such as café owner Graham who says: “Kirsty advised us to take up the Personal Fee Protection Service, so we were covered in case of a tax investigation. We subsequently did get a letter saying the HMRC wanted to examine our tax, and all I had to do was ring up Tom. He took care of everything and the tax investigator went to THP’s offices to examine all the accounts and paperwork. She walked away happy, we didn’t have to worry about a thing and the fee was completely covered by the PFP service. That advice took all the stress and cost out of the investigation when it finally came along.”
So, which would you rather have? Three months paying additional accountancy fees to keep HMRC at bay, or the peace of mind that comes with knowing your accountant’s fees are covered – no matter how long the taxman decides to spend combing through your books.
If peace of mind is more your kind of thing, contact us today. We can get your Professional Fee Protection in place immediately!
Image source (Creative Commons Licence)