Tax Investigation Protection, Or Professional Fee Protection – Is It Worth It?
Posted by Ben Williams on Wed, Feb 15, 2012 @ 09:22 AM
Tax Investigation Protection, or Professional Fee Protection as it is sometimes called, is a type of protection measure you can take out to protect you from your accountant’s fees should HMRC come knocking for an investigation.
Because the Revenue estimates that there is a £40billion gap between what is due to them, and what they actually collect, anyone can be selected for enquiry by HMRC.
When HMRC do come knocking, you will have to justify not only your accounts, but your income and lifestyle. People are often shocked at the type of questions HMRC can actually ask, and you’ll have to prove your innocence rather than the inspector having to prove his case.
Professional representation is essential when dealing with these highly trained inspectors, as a proper defence is likely to make the difference between a successful outcome or a huge tax bill!
As an example, a hairdresser was selected for investigation and inaccuracies were identified in cash sales. A thorough and robust defence ensured that the business was properly defended, and ultimately, the settlement demanded by HMRC was reduced by almost £80,000! The accountancy fees during this enquiry were in excess of £6,500; which was obviously covered by the Tax Investigation Protection.
These investigations can be a lengthy and costly process, and it is absolutely essential that you have professional representation. The only problem with that is that professional representation could cost you thousands, or even tens of thousands of pounds.
Which is what the Tax Investigation Protection is for - you pay a small fee for protection for the whole year.
As part of the protection, you are covered for professional fees of up to £75,000, and you also get free access to a 24/7 legal hotline.
For more information regarding the Tax Investigation Protection, please give Ben a call on 01273 845 622. Alternatively, you can email Ben here.
