Tax and VAT Fee Protection – What is it?
Tax and VAT Fee Protection is a service that allows businesses and individuals to safeguard themselves from the cost of professional fees associated with a tax investigation.
As a trusted adviser to your business it is our role to help you to protect your business should you be selected, which is why we recommend our Tax & VAT Fee Protection Service.
I’ve kept my tax affairs in order – do I really need this protection?
It’s important to understand that if you're selected for investigation by HMRC, the reality is it will cost you money even if you've done nothing wrong.
HMRC are proactively targeting individuals and businesses using sophisticated software that has been specifically developed to search trends, indicators and behaviours and analyse in minutes.
Data that doesn’t cross match can automatically initiate an enquiry. This software combined with wider powers and increased targets means that your chances of being investigated are rising.
Anyone can be selected for investigation: a business, director or individual tax payer.
Are tax investigations relating to claims in connection to COVID-19 support measures included?
Yes they are. Given the amount of financial support the Government has made available for businesses severely impacted by the coronavirus outbreak, it would be wise to assume that HMRC will be keeping a close eye on where this funding goes. If you have accessed any of the COVID-19 support measures including the Coronavirus Job Retention Scheme (CJRS) / Furlough Scheme or the Self Employed Income Support Scheme (SEISS) then you should consider the benefits of this fee protection service. We expect that HMRC investigations would increase to validate that the financial packages are being claimed correctly and legitimately by those eligible.
How much would a tax investigation cost?
Tax investigations can last for months. During this time, you could find yourself incurring accountancy fees as well as having to deal with costly business disruption and probing questions.
Professional representation is essential in dealing with HMRC in a timely and robust manner. We will demonstrate to HMRC that you are paying the correct amount of tax and assist with the investigative procedures. Even if you’re found to owe nothing you will still have to pay your professional representation fees.
For a modest annual fee you can safeguard yourself from these unforeseen costs, giving you peace of mind.
What does Tax and VAT Fee Protection include?
The service covers up to the equivalent of £100,000 towards our professional fees resulting from an HMRC enquiry.
Professional representation on all matters relating to your investigation will be provided, ensuring that the enquiry runs as smoothly as possible and proving you with peace of mind. We also deal with the insurers on your behalf:
- Expertise and experience in dealing with HMRC
- Peace of mind that the experts are dealing with HMRC on behalf
- Dealing with HMRC on your own could make matters worse
- Early intervention can lead to early resolution
- Additional tax due can be avoided or mitigated
You can download a copy of the policy document here.
How much does Tax and VAT Fee Protection cost?
Tax and VAT Fee Protection is charged as an annual fee as per the following categories:
||Amount due per client
(Inclusive of VAT)
|Personal Tax clients (includes rental income of up to £50,000)
|Sole Traders with turnover under the VAT registration limit and Personal Tax clients with rental income in excess of £50,000
|Non-Trading Holding Company
|Sole Traders with income in excess of the VAT registration limit and Partnerships with annual turnover of up to £10m
|Limited Companies with annual turnover of up to £10m
|Businesses with annual turnover of more than £10m
The prices quoted above are for 9 months cover from July through to the end of the current cover year which is 31 March 2021. The standard period of cover is 12 months from 1 April 2020 to 31 March 2021. If cover is requested during this period, the cover will be pro-rated to the number of whole months to the end of the cover year including the month in which cover commences.
As a valued client we strongly recommend that you take advantage of this service.
To purchase Tax and VAT Fee Protection please follow this link.
Please note this link will take you to a website called Cognito Forms. You will not be asked to provide any card payment details through this website, only your business information.