HMRC has been cracking down on people who haven’t paid taxes for years. They’re looking for any excuse to come after you, so it’s important that you take steps to protect yourself.
If you’ve ever had an investigation by HMRC, then you know how stressful it can be. In fact, the average investigation takes around 16 months and £5,000 in accountant's fees. That’s why it’s important for you to purchase tax investigation insurance. This type of policy will cover you during the investigation, giving you peace of mind knowing that you won’t lose money because of an error made by yourself or your accountant.
There are several different ways that HMRC can investigate you. They might ask you questions about your business, your income, or even your personal life. However, there are some things that you can do to reduce the chances of being investigated. First, make sure that you keep accurate records of your finances. Second, make sure that you file your taxes correctly. Third, make sure that you pay any back taxes owed within the deadline. Finally, make sure that you have proof of your expenses.
We can assist you with all 4 of these! Contact us to get a company profile and learn more about our services.
There aren't any rules that suggest a firm will be investigated for paying the wrong amount of taxes. However, common reasons for an investigation include paying the wrong amount of taxes, tax evasion, being reported by an employee, or even missing out on HMRC deadlines.
If you’re worried about being investigated by HMRC, then you need to consider getting tax investigation insurance. This type of policy will cover you against any penalties or fines that you may incur as a result of an audit. In addition, will give you this peace of mind knowing that in the event of a tax investigation, a team of professional accountants will handle the entire process for you.
Did you know that HMRC can look back six years into your financial statements to see whether you’ve been paying the right amount of tax? They can do this because they have access to records of your income and expenditure. This imposes a danger for businesses that have in the past paid fewer taxes than they should or avoided paying taxes in illegal ways. Don't hesitate to reach out to learn about our Tax Investigation Insurance, what it includes, and the pricing.
