Do you have fee protection insurance in place? If not, read on so you are prepared.
Did you know every year HMRC undertake a reported 300,000 compliance checks on self-assessment tax returns?
And did you know they can do checks over the past six years of assessments?
How confident are you that you have submitted everything 100% correctly? Are you positive you haven’t made a mistake (intentional or not) or that your accountant has not made a mistake? (Take time to read What is a chartered accountant and the importance of using one!)
And if you get investigated, would you have the funds available to get your accountant to deal with an investigation on your behalf or to pay any fine if mistakes are found?
This is where fee protection insurance comes into play.
What is Fee Protection Insurance?
It is an insurance-backed service that will protect you from accountancy fees associated with dealing with an HMRC enquiry or dispute.
Why would I be investigated?
There is no definitive answer as to why, but there are a lot of possibilities: filing a late return, errors that require correction, dealing with cash, HMRC receiving a tip-off, or working in a targeted business sector, to name just a few.
The revenue’s ‘snooper computer’, Connect, collates data from banks, Land Registry records, Visa and MasterCard transactions, DVLA, council tax, VAT registration documents, Airbnb, and believe it or not even your social media profiles.
A common misconception is that a mistake has been made but that is rarely the case. Random enquiries can and do happen.
How much does an enquiry cost?
The cost will vary from enquiry to enquiry but can run into hundreds or even thousands of pounds, even if no additional tax is due at the end.
Immediate professional representation from your accountant can be essential in successfully and quickly dealing with HMRC enquiries, but that will come at a cost.
This insurance means that the cost of the accountancy fees will be covered, leaving you with peace of mind.
How do I get insured?
At Maynard Johns Chartered Accountants, we can offer you fee protection insurance and many of our clients take advantage of this. At the time of writing cover for a business is £137.20 and for an individual is £46.37. We consider this a small price to pay to give you peace of mind should you be subject to an investigation.
Contact us on 01237 472071 if you would like to receive more details on what our policy covers or if you would like to take out this insurance.