 CODE members now benefit from free Tax Investigation Insurance brought to you by our Insurance partners, Hamilton Fraser Insurance Solutions.
Why do you need Tax Investigation insurance?
When HM Revenue & Customs (HMRC) start an enquiry it doesn’t mean they think you have done anything wrong. It routinely checks a proportion of tax returns to make sure they’re correct, and will sometimes need more information to understand the figures. It also randomly selects tax returns for enquiry to ensure the system is operating fairly. In a few cases HMRC may decide to conduct an extensive examination of all areas of your tax affairs. These fuller enquiries involve an in-depth review of the records on which your tax return was based including, if relevant, your business records.
HMRC will tell you in writing:
That it intends to start an enquiry
Whether it's looking at the whole of your tax return, just one or more specific areas or at a claim you made outside the tax return
What information it needs from you and the deadline for your reply
Your rights and responsibilities
There are several possible outcomes of a tax enquiry ranging from “No Action” to the payment back of taxes within 30 days including if relevant, fines and interest. HMRC normally has from the time it receives your tax return until 12 months after the latest filing date (usually 31 January) to inform you that it intends to start enquiries. Other deadlines apply for late and amended tax returns, or where the information you supplied was deliberately misleading.
In addition to taxation enquiries, HMRC also look at PAYE and NIC issues, VAT and other duties.
All these types of enquiries cost time and money to sort out. Taxation Insurance is designed to take away some of the burdens facing you should you be subjected to an investigation.
If you wish to discuss this benefit in more detail you can contact Hamilton Fraser Insurance on 0845 310 6300 or you can download the Policy and the Key Facts here. |
