Thursday, September 27, 2007

Tax investigations - you are at risk!

As you may know the Inland Revenue and HM Customs and Excise have now joined forces. They are now known as HM Revenue & Customs.

This means they have even more power than before and access to each others database of information. I've attached an article from The Times about the bonuses paid to tax inspectors which may interest you.

This also means by their own admission that the number of tax investigations will be increased in the future. The average investigation costs around £3,000 in accountancy fees so we are anxious you should be covered if you were investigated.

Please follow the link below to download an application form for you to sign and send off for tax investigation insurance if you wish to join the scheme. The cover is dated to start 1 November 2007 and will cover you for any Inland Revenue investigation which opens during the year afterwards.

Please send the form with a cheque for £80 to: -

Icon Insurance.Plantation Place.30 Fenchurch Street.London. EC3M 3BD
Please make the cheque out to ICON INSURANCE.

I make no commission from this by the way - I just want you to be protected. And if you read the small print you are supposed to pay the first £250 of each claim but I will do the first £250 of work of any tax investigation for FREE if you sign up to this policy!

Just let me know when you have signed up and posted the form and cheque.

If you do not wish to join this scheme please reply and confirm this for my records.

If you are investigated at a later date we will ask for £1,000 up front as a working deposit and then bill you as the investigation progresses. We also may employ the services of investigation specialists who can charge up to £250 per hour for their time.

Please follow the links below to download the application form and article:-

Click here to download the application form.

Click here to read the Times article Times article on tax inspectors bonus.pdf

Don't wait too long - you could be next!


Helen Fogg said...

I am a member of the Federation of Small Businesses who say they would take charge of any tax investigations at no cost to the member. That is one of the main reasons I renew each year at a cost of around £70 for the year. Do you know anything about this?

Shaun's tax tips said...

Helen you are correct. Anyone who is a member (and we are) has tax investigation protection insurance included as part of their membership so won't need this policy.
I believe though if an enquiry is opened their accountants deal with it.