The number of people being investigated by HM Revenue & Customs (HMRC) has doubled over the past year, with stronger procedures now being followed to tackle the estimated £35 billion tax that is lost each year – so it’s more important than ever for all businesses to be prepared for an impending investigation. It’s easy for companies to get bogged down in outgoings and running costs, which is one reason so many fail to opt for tax investigation insurance – but these are some very good reasons this insurance could be the way to bulletproof your business.
What is Tax Investigation Insurance?
A tax investigation by the HMRC could be an expensive and lengthy process for your business to go through. Investigation costs can run into the thousands, and the process could take many months to complete – so it’s important to be prepared. Tax investigation insurance will cover you for any costs incurred during an investigation, which you’d be expected to cover. Most firms will offer their services to deal with an investigation, and all the related costs – making the experience stress free and painless!
Why do you need Tax Investigation Insurance?
HMRC made over 230,000 tax enquiries in 2012-13, compared to 119,000 in 2011-12 – which clearly shows their increased effort to tackle tax evasion. They have also hired 200 new investigators in the last three years, meaning the volume of enquiries is at an all time high.
Selection for tax investigation occurs completely at random, and not just when wrongdoing is done with tax returns. This is a common misconception that business owners make. HMRC can investigate you even if your tax returns and business records are accurate – so no one is safe from an enquiry. Without the help of the professionals, that is.
At Insight Accountancy, we know that money matters – which is why we’re giving you the chance to win a years free tax investigation insurance. With us, you can guarantee your finances will be in safe hands.