Our clients will recently have received a communication from us offering cover which protects them against the cost of investigations by the Revenue authorities.
Like all insurances most clients will hope that they never have to use it but unfortunately in this case some will, often through no fault of their own.
At some time or another virtually all businesses will get a visit from either the Inland Revenue or Customs and Excise. In most cases these cause no major problems but in more and more instances they result in some sort of enquiry involving a substantial amount of work often to prove the Inspector wrong. When this happens who pays the fees of the professional to protect the business from an over zealous Inspector?
This is where clients who have taken out the Professional Expenses Insurance appreciate its worth. Clients who have benefited in the past know that because they do not have to pay our fees we can continue to negotiate with the Inland Revenue or Customs and Excise when previously it would have been more economical to settle a dispute even if the amount demanded was excessive.
One particular area which the Inland Revenue have found to be rewarding are PAYE and NIC audits. All employers are likely to have one of these about every five years. The number is likely to go up with an increase in staff under the “Spend to Save” initiative. The very name shows how much they intend to collect.
Remember –
· Under Self Assessment the Inland Revenue investigates taxpayers at random.
· The Inspector does not have to give a reason for an investigation.
· You are guilty until proven innocent in Income Tax legislation.
No wonder the majority of our clients choose to take this insurance. Of course we cannot pay any tax found to be due but once you are covered we can at least ensure it is the correct amount without having to charge you for doing so.
Our insurance cover is provided by Abbeytax Protection and you can find out more about them via the link to their website.
If you are a client of another firm do they offer you this cover? Our Institute has recommended to its members that they do so if you have not been offered it ask why not.
If you would like any further information regarding this or any of the other services we offer please contact us via the contact section of this site.
Clive Jones – Clifford Towers, Chartered Accountants
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