Whatever your business, the FSB will work for you.
FREE tax investigation protection for FSB members
HMRC investigation insurance:
why your business needs it
As a business, you can't afford to be without tax protection insurance. Here's why:
- HMRC investigations can take place at any time, even years after a business has closed.
- On average, an HMRC investigation takes around 16 months.
- In 2011, 33% of HMRC enquiries handled for members related to businesses with a turnover of under £150,000. Of these, 71% had declared profit of under £25,000.
- Average accountancy fees to handle an investigation are £2,000-5,000.
Join the FSB for FREE tax advice and tax investigation insurance
Become an FSB member and you'll get immediate professional support and essential protection for tax matters:
- Free tax advice helpline manned by Revenue-trained specialists
- Former tax inspectors to represent you during any HMRC investigation who will liaise directly with your accountant
- Tax investigation insurance - any fees that the FSB agree with your accountant are covered in your policy
A PAYE Compliance Review commenced in June 2009 lasting 2 years. HMRC were largely happy with the payroll records, but concerned about the reimbursed mileage costs paid to salesmen. HMRC said that the expenses should have been taxed, which would have given rise to a liability of circa £50,000.
The position was defended through FSB's tax protection service and following a review by a Technical Specialist, HMRC conceded that their interpretation was incorrect.
- The review lasted 2 years.
- The costs for defending the member were £3,800.
- There was no additional liability.
The enquiry into a Bed & Breakfast began in September 2010 and ended 9 months. The business declared turnover of around £150,000 and a healthy profit,yet the HMRC still selected it for enquiry. Luckily, it was protected for tax investigations.
- The enquiry lasted for 9 months.
- It cost around £2,000 to defend the member.
- A small liability arose in respect of an unrelated Capital Gain.