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Fee Protection Service

Why do we offer Fee Protection to our clients?

Anyone that pays tax can come under scrutiny from HM Revenue & Custom (HMRC). Every year HMRC starts enquiries into many thousands of personal and business tax returns and accounts. VAT and PAYE payments are also thoroughly checked. The aim in every case is to collect more tax.

HMRC continue to use various methods to increase the volume of enquiries and investigations launched into clients’ tax affairs. Their use of task forces has been well publicised with the number of claims  growing considerably. There has been a 17% increase in the amount of extra revenue generated by HMRC’s specialist task forces in just a year to £541m in 2018/19, up from £464m in 2017/18.

Task forces are used to target certain industries or professionals where there is a strong suspicion that tax evasion is endemic. There have been 360 task forces created since 2011. They are drawn from HMRC’s most experienced staff who are specialists within their particular industry.

We have also noticed a more targeted attitude from HMRC in respect of VAT investigations with a typical VAT enquiry alone costing up to several thousand pounds. With Making Tax Digital regulations now in force, it is anticipated that HMRC will increase the number of reviews.

The cost of defending these investigations can run into thousands of pounds, even if little or no extra tax is paid at the end of the enquiry.

That is why we strongly recommend that our clients join the scheme so that they have peace of mind in the event of an investigation.

What is our Fee Protection Service?

Our Fee Protection Service, in partnership with Croner Taxwise, includes:

• Any compliance check started by HMRC regarding your compliance with Income Tax and/or Corporation Tax Self-Assessment: PAYE, National Insurance, Construction Industry, IR35; VAT; National Minimum Wage or Gift Aid legislation and regulations; and any consequent dispute with HMRC after the issue of an assessment, computation of liabilities, written decision, notice of VAT civil penalty or notice of underpayment of the National Minimum Wage. As well as any claim in respect of Inheritance Tax enquiries, Child Tax Credit enquiries or compliance check carried out under HMRC Code of Practice 8 (provided fraud is disproved subject to a maximum indemnity of £5,000).
• Professional fees incurred in respect of a local review of the enquiry and preparation and representation at an appeal to the First-tier Tribunal, Upper Tribunal or Employment Tribunal and any appeal against such a tribunal’s decision. After an appeal to the Upper Tribunal or where there is no right of appeal to the tribunal, the Policy will cover an application for Judicial Review (subject to a maximum indemnity of £5,000).

As a member of the scheme you will also have FREE unlimited telephone access to:

• Employment Law specialists providing pro-active HR advice on hand helping you to manage your employees.
• Commercial Legal consultants and experienced solicitors who will advise you on all areas of law including contract, corporate, property and landlord & tenant.
• Health & Safety support. Do you really know what the responsibilities and implications are?

We believe that the FREE telephone support service alone is extremely valuable to you and your business compared to arranging separately.

For more details or if you would like to join our fee protection insurance scheme, please contact our Exeter office on 01392 258553 or email Andrea Sear at fpi@tjllp.com