Compliance Checks

HM Revenue and Customs Compliance Checks are now underway. In the last few years it has been unlikely that you would be selected for a tax investigation, and people have tended to assume it won’t happen to them. As long as your records are complete and accurate, and all income has been declared you should have nothing to worry about.

However, HM Revenue and Customs now has an additional £900 million to fund tax investigations, checks and inquiries. The government aims to raise £70 billion in the next 4—5 years, and has identified sole traders and small limited companies (including those with only one director), as a main group to target.

Tax investigations are now more likely than ever before, so please;

• Fully declare all of your taxable income and outgoing ;
• Keep accurate and complete books, and receipts for everything you buy, even items purchased in cash and online:
• Make sure tax returns, VAT returns, payroll returns and other required documents are filed on time;
• Pay all taxes on time;
• Remember that HMRC has access to bank accounts, property accounts and other information, so don’t assume that you’ll go unnoticed.

If you receive any communication from HM Revenue and Customs, especially if the words ‘Compliance Check’ are used, inform your accountant or tax advisor immediately for advice on your rights.

Tax Investigation Insurance

There is insurance cover available to protect against accountant’s fees charged for dealing with tax investigations (compliance checks). There can be significant work and costs involved in a tax investigation, which could put unnecessary strain on your finances.

Pleaseget in touch if you would like to find out more.

But before considering tax investigation insurance check if you’re already covered. It may be included in your business insurance policy, or as a benefit of membership of the Chamber of Commerce, Federation of Small Businesses, or your trade organisation etc.