Connect was first launched in 2010 to gather data and information from multiple sources, including banks, local councils, land registry and even social media to help HMRC identify where tax avoidance may be an issue. HMRC says that it now stores more data than the British Library.
Some HMRC statistics:
- A record £26.6bn of additional tax was collected through compliance checks in 2014/15
- Extra revenue per year from small business tax enquiries increased to £565m
- The number of people being investigated more than doubled in one year
- HMRC pays a record £600,000 to informants
Consequently, everyone is now at greater risk than ever of being investigated by HMRC. If it happens to you, the questions will be detailed and time consuming to answer. Whether or not HMRC finds extra tax to pay, the costs to defend you can be substantial.
We would like to recommend that all our clients take this opportunity to be protected against such unexpected costs, and it can be achieved very simply by taking out Tax Fee Protection Insurance cover.
Professional fees for defending clients in tax enquiries can be claimed under the insurance policy. There is a full list outlining the circumstances in which claims may be made in our ‘Summary of Cover’ document, which will be sent to all our clients that take advantage of this cover.
Please click on this link to see a document sample. We can also send you a copy of the full Policy Wording on request.
In addition, if you need assistance on general legal issues or regarding the complex areas of Employment Law and Health & Safety, there is complimentary expert advice available too.
What Do I Need To Do Next?
The policy commences on the 31st July 2018. If you would to take out cover, please follow the instructions below:
- First of all visit our fee protection page via our insurer’s website here: Qdos website
- Create an account and select the New Client option when presented, and purchase cover for complete peace of mind.
Please note that our normal annual fees do not cover the additional professional costs of handling tax enquiries and compliance checks.
Please also see the ‘Demands & Needs, and Terms of Engagement’. You should note that in providing this insurance Qdos is acting as a general insurance intermediary. They are licensed to undertake these activities by the Institute of Chartered Accountants in England and Wales.