Tax Protection

FSB members are provided with tax protection by means of tax advice from Revenue trained specialists.

Did you know?

A tax investigation can be a costly experience as the average accountancy fees charged to deal with HMRC enquiries could cost you anywhere between £2,000 to £5,000 and this is before you consider any additional liability due to HMRC. With the FSB's Legal Protection Insurance our tax experts are all ex-Tax Inspectors who will act on your behalf to provide the representation required to deal with the enquiry. This includes, where necessary, liaising directly with your accountant. If they need any work undertaking by your accountant they will agree a fee for the specific work requested which will be covered within the Policy.

HMRC can investigate a business at any time even several years after closing. Did you know that the average duration of a Tax Investigation is approximately 16 months? This is a long time without any support. During 2011, 33% of the HMRC enquiries handled on behalf of members related to businesses with a turnover of less than £150,000. Furthermore, 71% of the members helped had a declared profit of less than £25,000.

It is clear that the Revenue do not shy away from targeting small businesses. By being a member of the FSB you have immediate professional support and essential business protection.

Are you protected against Tax Investigations? Members have access to information and documentation on tax through the FSB's members only website: www.fsblegalinfo.org.uk

In association with:

Tax Protection

TESTIMONIALS

Classic Car Dealer

The enquiry into a classic Car dealer commenced in October 2009 and concluded some 17 months later in March 2011. This was, in fact, the second enquiry that HMRC had conducted into this member's business in recent years; the first enquiry was also covered FSB Legal Benefits Policy and resulted in a liability of only £450.

The member's business had a turnover in excess of £700,000 but declared a taxable profit of less than £15,000 which was one of the reasons why HMRC may have started the enquiry although it became apparent that HMRC held third party information about the member.Points of note:

This was the second time the member was able to use the Legal Benefits Policy.
The enquiry lasted for 17 months.
Our Consultant spent more than 27 hours dealing with the enquiry.
The costs for defending the member were approximately £5,000.
The additional liability was circa £1,000 due to timing differences.

Pet Breeder

The enquiry into a business supplying pet shops started in August 2010 and was conclude some 7 months later in March 2011.

The business declared a healthy turnover/profit; as such, it was not apparent why HMRC wanted to open an enquiry but they indicted that they would be considering both Income Tax and VAT declarations made as part of the enquiry.

At the end of the enquiry the member provided the following comment:"The service was exceptional and our Abbey Tax Consultant was very helpful, extremely knowledgeable and a pleasure to work with. He made the whole experience much less stressful."Points of note:

The enquiry lasted for 7 months.
Our Consultant spent circa 12 hours dealing with the enquiry.
The costs for defending the member were in excess of £2,000.
There was no additional liability.

Manufacturer

A PAYE Compliance Review commenced in June 2009 and concluded 2 years later in June 2011.

HMRC were largely happy with the payroll records although were concerned with the reimbursed mileage costs paid to salesmen. This resulted in HMRC contending that the expenses should have been taxed which would have given rise to a liability of circa £50,000.

The position was forcibly defended and following a review by a Technical Specialist, HMRC conceded that their interpretation was incorrect.

Points of Note:

The review lasted for 24 months.
The costs for defending the member were £3,800.
There was no additional liability.

Guest House

The enquiry into a Bed & Breakfast commenced in September 2010 and concluded 9 months later in June 2011.

The business declared turnover of approximately £150,000 and a healthy profit so it is not clear why this particular member was selected for enquiry although HMRC have been looking closely at B&B's in recent years.Points of note:

The enquiry lasted for 9 months.
The costs for defending the member were circa £2,000.
A small liability arose in respect of an unrelated Capital Gain.

FSB Tax Advice Line

FSB Tax Advice Line 08450 727 727

FSB Legal Information Online

www.fsblegalinfo.org.uk

Whatever your business, the FSB will work for you.