The Rise in Tax Enquiries: Why a Tax Protection Service is Your Best Defence

The vast world of taxation is currently undergoing a significant shift. Recent data suggests there’s an eye-watering deficit of £5.2 billion between what HMRC should have collected in taxes and what they’ve actually received. Naturally, this discrepancy is propelling HMRC to intensify its efforts. What does this mean for you and us? In short, HMRC is amplifying its investigations, leading to an unprecedented surge in tax enquiries.

Why The Increase in Enquiries?

The aforementioned £5.2 billion deficit is a principal driving factor. With such a gaping hole in expected versus actual revenues, HMRC is left with little choice but to ramp up its investigation activity. It’s essential to understand that these enquiries are not solely reserved for those who might have suspicious tax activities. Even the most diligent taxpayers, who have committed no wrongdoing, can find themselves under the microscope.

What Does an Enquiry Entail?

Should you find yourself at the centre of an HMRC enquiry, irrespective of any wrong-doing, compliance is required by law. This means:

Submission of Records: Offering up any financial records or other information HMRC requests.

Attendance: Partaking in any meetings mandated by HMRC.

The process can be undeniably stressful, time-consuming and costly. What’s more, many of these investigations conclude with HMRC finding no evidence of wrong-doing. However, if discrepancies are found, taxpayers face not only additional costs but potential penalties.

Defending Against Enquiries: The Value of Early Expertise

From our extensive experience at Lewis Brownlee, we’ve observed that having us in your corner from the very outset is the most effective shield against these investigations. By enlisting our expertise as your accountants early on, you can ensure your tax affairs are exactly as they should be. Furthermore, our clients are able to sign up to our Tax Protection Service, which means they will have us by their side in the event of an enquiry.

Benefits of our Tax Protection Service:

Expert Representation: Our Tax Protection Service sees our seasoned team, well versed in the nuances of UK tax laws, navigate the intricate paths of enquiries for you.

Cost Coverage: It safeguards you against the potentially high accountancy fees associated with lengthy investigations up to £100,000. Yes – the costs can really go that high, particularly if agreement on a technical point cannot be reached, and a case ends up going to a tribunal!

Peace of Mind: It allows you to sleep easy, knowing that our team is managing the complexities, ensuring you meet all compliance demands and substantially reducing the stress of the process.

In short, as the tax landscape evolves and the intensity of HMRC investigations grows. So, equipping yourself with a Tax Protection Service becomes more crucial than ever. At Lewis Brownlee, we’re here to stand by your side. As such, we’ll ensure you’re not just compliant but protected against the uncertainties of the tax world. So, what are you waiting for? Become a client today and sign up to benefit from our Tax Protection Service. It really is all round peace of mind.

If you’d like to speak to one of our experts about your accounts, please call 01243 782 423, or email from our contact page and we will be in touch!

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