As of April 2009 HMRC are able to visit business premises to inspect records covering all taxes including corporate, income, PAYE, NI, Capital Gains and VAT. They can now also issue written queries before you have even submitted your annual tax returns. For a small annual fee (starting from £97 per annum) you can subscribe to our Fee Protection Service which will cover you for the work and costs of defending you in the event of a tax enquiry by HMRC.
Anyone that pays tax can come under scrutiny. Every year, HMRC starts enquiries into thousands of personal and business tax returns and accounts. VAT and PAYE payments are also thoroughly checked. Most enquiries are generated by computer “risk profiling” and many are selected completely at random. As a result, HMRC sometimes picks the wrong targets, Even if you have done nothing wrong, the taxman will not give up and will still try hard to find errors.
The questions asked by HMRC are usually very detailed and time-consuming to answer. The costs of defending you can easily run into thousands of pounds, even if little or no extra tax is paid at the end of the enquiry. These costs are not covered by the normal annual fees paid, so the addition of a small annual fee can save a lot of money down the line.