Fee Protection Cover

HMRC — the threat is real

In the past, HMRC’s role was to ensure that you or your business paid the right amount of tax.

However, in recent times, its key objective has changed to maximise the amount of revenue it can collect from taxpayers. For 2020/21 HMRC was given the target of collecting an additional £30bn in revenue for the Treasury.

This annual target was in part to be achieved by increasing the number of compliance checks, enquiries and investigations it conducts. Some are opened entirely at random whereas others are selected from specific business sectors or geographical areas. Worryingly, more and more are chosen based on the data HMRC holds on you and other taxpayers.

While HMRC is committed to reducing the tax gap, it will continue to increase its enquiry activity so the risk of being selected for an enquiry is ever present.

Even if HMRC finds nothing wrong and there is no additional tax to pay, the burden of a tax investigation can have a serious impact on your financial security, your ability to focus on running your business and of course, there is the likely stress which it can bring. A specialist and professional defence will help reduce the burdens of an enquiry.

Reasons to act now

1. Tax investigations can happen to anyone, at random, whether you are an individual or in business.
2. HMRC is working hard to collect more revenue than ever before. Last year it generated £30.45bn from compliance activity which is expected to increase to over £30bn annually. This means that the chances of being selected for an enquiry remain a concern.
3. HMRC is becoming more sophisticated in its approach to recovering additional tax. With the details held within its Enterprise Data Hub, it has amassed more facts and figures about taxpayers’ financial activity – it already holds more information than the British Library. This enables it to be increasingly targeted in its selection of those it chooses for investigation.
4. Don’t underestimate the impact on you or your business of the stress and anxiety caused by being selected for an enquiry.
5. This service ensures that you have an experienced professional on your side when you need them.

Don’t become just another HMRC statistic!

Service Summary

Service period
Tax Return Client:
Covers work carried out in relation to the 2021/22 tax year and the fee is £24 plus VAT.

Limited Company Client:
The terms of service will be dependant on the company year end and will be confirmed via email.

Service Protection
Where Thandi Nicholls Ltd is engaged in the preparation and submission with one of the tax return types mentioned below, fee protection of up to £5,000 is provided in the event of:

Full and aspect enquiries into:
– Corporation tax returns
– Partnership tax returns
– Sole trader tax returns
– Personal tax returns

Disputes into:
– VAT
– Employer compliance (PAYE, P11D and NIC)
– IR35

HMRC use of information and inspection powers/Sch 36 pre disputes in respect of:
– VAT control visits
– Employer compliance visits
– Check of employer records
– Interventions
– Requests for information
– Capital gains tax.

Main exclusions

• Failure to notify/register for tax or VAT.
• Late returns.
• Notification or correspondence from HMRC prior to subscribing to the service.
• Fees incurred prior to signing up for the service.
• Compliance costs associated with routine submission of statutory returns, eg. P11Ds, RTI returns, CIS returns etc.
• Cases of suspected fraud (eg where HMRC use their procedures called Code of Practice 8 or 9 or issue Public Notice 160 enquiries).
• Where there is no reasonable prospect of challenging HMRC (VAT, PAYE and IR35 disputes).
• Costs for third parties, eg valuations.
• Tax planning arrangements disclosed as tax avoidance schemes, where HMRC has allocated a DOTAS number and/or bespoke tax planning arrangements outside of the normal trade.
• Thandi Nicholls Ltd ceasing to be engaged in the preparation and submission of tax returns or services.
• In the event of becoming insolvent
• Let property campaigns

Protect yourself today

With HMRC committed to reaching its target of recovering £30bn, and with 46% of its staff dedicated to enforcement and compliance, we believe that compliance activity is one of the biggest threats facing you over the next few years.
Subscribing to the service ensures that we will do all the following:
• Handle all meetings and correspondence with HMRC;
• Negotiate on your behalf to make certain that you pay the right amount of tax;
• Take responsibility for ensuring that you are treated fairly by HMRC; and
• Give you peace of mind that most professional costs of your defence are protected.

That is why we recommend that all clients subscribe to this service today. Remember, the annual cost for tax investigation protection is a fraction of the typical costs of a defence.

Do you have a question for our experts?

If there’s a property tax issue that has you puzzled or worried, get in touch. Everyone on our team loves to talk, especially when it helps people like you find peace of mind.