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Are you at risk from a tax investigation?

With the government more determined than ever to increase tax revenue, the chances of receiving a letter, phone call or - more worryingly - an unannounced visit from HMRC has become more likely than ever before.

However, as there are millions of taxpayers and taxpaying businesses in the UK, what is the real likelihood of them picking you and your business?

The following, in no particular order, are the most common triggers for an investigation:

  • HMRC receives a tip-off
  • You have an off-shore bank account
  • Your tax returns are inconsistent with your standard of living
  • You have income from property
  • You work in a high-risk industry, for example one that routinely takes cash payments
  • You have a large fall in income, increase in costs or there are inconsistencies between different returns
  • You file your returns late
  • Your costs are above the industry norm
  • You are in a category that HMRC have decided to target. Two current campaigns are Second Income and Let Property.

We can cover you

Whatever the reason, a tax investigation can take weeks or months to sort out, even if you have done nothing wrong. It can seriously disrupt your business and can also result in a lot of expense in fees, which can run to thousands of pounds for larger, more complex cases.

This is why we offer our clients a Tax Enquiry Fee Protection Service scheme which means our fees are paid by our insurer.

Our Tax Enquiry Fee Protection Service is an insurance policy that protects you against the costs of a HMRC tax investigation. Cover starts from as little as £18 per year for tax return clients and £68 per year for businesses.

Get in touch

Find out more about how to protect yourself by emailing one of our senior partner Tracy Attard at tracya@knightandcompany.co.uk or call 01628 631 056.