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Tax Investigations

Tax Investigations are on the increase. Would you know how to handle one?

WHO ARE ABBEY TAX?

Abbey Tax are a company that provides insurance to cover professional fees arising from HM Revenue & Customs (HMRC) enquiries. Our staff have many years’ experience of dealing with Tax Enquiry Insurance and all issues relating to enquiries by the tax authorities. We also offer advice and consultancy on tax, VAT, employment law and health & safety.

WHAT IS TAX ENQUIRY INSURANCE?

Tax Enquiry Insurance is an insured service designed to cover the professional fees incurred during HMRC enquiries, including Income Tax and Corporation Tax Self Assessment enquiries and disputes arising from VAT enquiries and Employer Compliance Reviews.

INSURANCE COVER INCLUDES:

The maximum amount insured is £100,000 in any one claim, against:

Income Tax Self Assessment full and aspect enquiries.

Corporation Tax Self Assessment full and aspects enquiries.

Disputes arising from HMRC VAT enquiries.

Disputes arising from HMRC Employer Compliance Reviews.

IR35 and other status disputes arising from HMRC enquiries.

There is no excess

Personal cover for directors, partners, the proprietor and their spouse:

To ensure seamless cover, the business premium covers enquiries into the tax returns of the directors, partners, the proprietor and their spouse or civil partner provided the appointed accountant has prepared the latest tax return of the individual. A separate higher rate premium may be required should any individual exceed the income limits for private clients as agreed with your accountant.

Main exclusions:

Enquiries or disputes which commenced prior to your nomination for inclusion under this service

Enquiries following the late submission of tax returns

Where prime records are not kept

Where fraudulent evasion of tax is involved

Enquiries into tax planning arrangements where HMRC have allocated a Tax Avoidance Scheme Number 

A copy of the full policy wording is available upon request

ABBEY TAX FEE PROTECTION INSURANCE

What powers do HM Revenue & Customs now have?

As of April 2009 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 HMRC?

Anyone that pays or should pay 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 have done nothing wrong, the taxman will not give up and will 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 the normal annual fees paid to us.

Is there anything I can do for peace of mind?

You can subscribe to the Abbey Tax Fee Protection Insurance Scheme which will cover you for the work and costs of defending you in the event of a tax enquiry by HMRC.

What is the Fee Protection Insurance Scheme?

It is a scheme set up by us to protect clients from HMRC queries. For a small annual premium, you can purchase a fee protection Policy and obtain the benefits described opposite. Under the policy, our professional costs incurred defending you in the event of a tax enquiry or dispute will be covered.

What are the main benefits of the policy?

• We 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 your insurance policy

• It will not be necessary to accept unreasonable tax charges by HMRC due to concerns about professional fees

What is covered by the Policy?

You will be fully protected under an insurance policy which provides cover for up to £100,000 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 Scheme, including the following:

• Routine compliance work, e.g. preparing your tax return

• Overseeing HMRC whilst they review your records

• Outstanding taxes, penalties, interest or any other amounts due to HMRC

• Defence of criminal prosecution cases or serious fraud enquiries

• Fees relating to pre-existing tax enquiries

Business and Commercial Legal Telephone Helpline 

As an additional benefit of subscribing to the Service, business clients receive unlimited access to a Business Legal Helpline. This is a 24-hour, 365 day a year telephone advice manned by a highly experienced team of 70 line advisors consisting of lawyers, barristers and solicitors. The advice line provides a wide range of companies and organisations with Commercial, Employment and Health and Safety services.

Commercial Advice

There are many areas within a business which, if not handled correctly, can take a substantial amount of resources to resolve. The legal advisors will be at hand to provide you with details of the relevant and current legislation in respect of any guidance you may need.

 

·         Intellectual Property

·         Small Claims Court procedures

·         Business Tenancies

·         Debt Recovery

·         Dealing with complaint letters (asserting rights)

·         Dealing with Statutory Demands

                  

Employment Advice

 

Employment legislation can be a minefield and an incorrect decision could put your business into turmoil. Therefore, the advice line can help to ensure your business remains compliant.

 

·         Recruitment

·         Discrimination

·         Appraisal and Disciplinary Procedures

 

Health & Safety Advice

 

All businesses are required by law to undertake a full health and safety risk assessment of their premises and business procedures. In the event of accidents, businesses could be involved in a civil prosecution for compensation and there could also be criminal prosecutions resulting in fines and even imprisonment.

 

·         Undertaking Health & Safety assessments

·         Correct procedures in the workplace

·         Understanding new legislation

 

Regulatory Information

 

The Business Legal Helpline is provided by a separate business, Abbey Legal Services (ALS), part of Abbey Protection Group Limited, which is authorised and regulated by the Solicitors Regulation Authority for legal services.

What will it cost to join?

Please contact Louise on 01462 422555 who can provide details separately of the annual premiums that are payable by different categories of clients. Please note this service is only available to existing Ashleys clients. 

How do I join or obtain more information?

To obtain cover under the Scheme please contact Louise on 01462 422555. A cheque for the amount due should be sent to us, unless otherwise stated. If you need any more information, please call Shane on 01462 422555.