Under the service, subscribing clients will be fully protected. We will claim under our insurance policy so our costs for defending your position are covered for up to £75,000, in the following circumstances:
- An HMRC enquiry into a personal or business tax return
- An HMRC enquiry into any business accounts, including those of sole traders, partnerships and limited companies
- Business record checks
- VAT and PAYE Compliance visits, including correspondence following the visits
- A dispute with HMRC relating to the tax status of employees or subcontractors
- CIS disputes
- National Minimum wage enquiries
- No excess to pay
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You will have telephone access to consultants who are available to assist you with practical advice on any employment and health and safety issues your business may encounter.
The advice line is available weekdays between 9am and 5.30 pm
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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 many thousands of personal and business tax returns and accounts. VAT and PAYE payments are also thoroughly checked.
I've done nothing wrong, why should I worry about a tax enquiry?
Most tax enquiries are generated by computer "risk profiling" and many are selected completely at random. As a result, HMRC sometimes picks the wrong targets.
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 Tax Fee Protection Service which will cover you for the work and costs we incur in defending you in a tax enquiry by HMRC.
What is the Tax Fee Protection Service?
It is a service to protect you, should you suffer a tax enquiry. For an annual subscription, clients can obtain the benefits described below. The service is backed by an insurance policy that we have arranged through Taxwise. Under the policy, Larking Gowen can claim professional costs incurred defending you in tax enquiries.
What are the main benefits of subscribing to this service?
Larking Gowen will defend those clients selected for a tax enquiry. The potentially high costs of professional fees for the defence will be claimed under our insurance policy. It will not be necessary to simply agree to tax charges by HMRC because of concerns about professional fees.
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Example of recent HMRC enquiries where our clients have benefited from our Tax Fee Protection Service and did not have to pay our fees...
Agricultural business subject to an HMRC Aspect Enquiry
HMRC raised a number of matters and requested a detailed breakdown of various entries in the accounts, including the directors' loan accounts, accrued income and the stock valuation. We dealt directly with HMRC, answered all their queries and following a review of the information provided HMRC accepted matters and confirmed that no extra tax was due. The enquiry lasted for over a year, fees in excess of £10,000 were incurred.
Printing business subject to an HMRC Aspect Enquiry
HMRC commenced an enquiry and raised questions on a number of items including pension contributions and dividends. After a flurry of correspondence, the matter was resolved and HMRC concluded that no adjustments were required. Fees exceeded £4,000.
Service industry company subject to a PAYE Compliance Review
Following a PAYE Compliance Review, HMRC came up with questions covering benefits, mileage allowances and claims. We dealt with HMRC, attended a meeting and the matter was resolved with a favourable result. Professional fees of approximately £3,000 were incurred.
Family trust with rental income
We recently received notification of an enquiry into a family trust. The queries were on various aspects of rental income and expenses. Whilst this was still on going, the same client had notice of an aspect enquiry on a capital gains tax point for a later year. Both were settled with no tax payable. The insurers paid all our fees of nearly £5,000.
Retired individual with multiple properties
HMRC opened an enquiry as two properties were sold within the space of a year and principal private residence relief was claimed on both. Substantial tax would be payable if HMRC succeeded and their attempts to win the case went as far as changing their published guidelines to suit their argument. Under the service, our professional fees are covered and negotiations are still continuing with fees to date in excess of £5,000. Without this service the client would have already conceded and paid a significant amount of additional tax.
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