Is a visit from the taxman a risk you can afford, or are prepared to take?
HMRC are more determined than ever to ‘claw back’ unpaid tax and ensure all tax due is paid. Millions of pounds have been allocated to target tax evasion and avoidance and the number of people being investigated by the taxman has doubled in one year.
Every year HMRC investigates hundreds of thousands of individuals and businesses in the UK. A tax investigation could happen at any time and everyone is at risk.
HMRC’s increased aggressive stance means more and more innocent businesses and individuals are likely to be investigated. Even if you have done nothing wrong, you are still at risk. HMRC don’t need a reason to investigate you and they can investigate anyone at any time.
You could be at greater risk than you think
Anyone who submits a tax return faces a real threat. HMRC are using a piece of highly efficient software which is accessing and trawling through your financial information right now.
The ‘Connect’ system has access to vast databanks holding information about every taxpayer and their businesses, income, assets and transactions.
From 2017, Connect will go global, with access to further data in 60 countries. It can identify tax discrepancies in seconds which can trigger a tax investigation.
A tax investigation could cost you – even if you’ve done nothing wrong
If they investigate you, HMRC will expect your professional adviser to explain how the computations have been prepared and how the amount of tax payable has been derived. As your trusted adviser, we will also be best placed to support and advise you through the enquiry process and to deal with any specific issues that arise.
Few individuals or businesses have budgeted for the cost of professional services should an investigation arise. However, if you are investigated it could be a substantial upfront cost, and for many this is more than they can afford at short notice.
Protection is available
We recommend that all our clients consider subscribing to our expert Fee Protection Service. If HMRC target you, we are on hand to guide you through the process, and by investing a small amount in our protection service now, you can rest assured that the professional fees are covered too.
A small cost now could save you thousands of pounds in the future.
If you’re currently an Ormerod Rutter client, you can request a free quote online now. If you’re not a client but would like to discuss this further, please contact us to speak to Anthony Middleton.