Every year, HMRC start enquiries into thousands of personal and business tax returns and accounts. Anyone who submits a UK tax return could come under scrutiny.
In partnership with a leading UK provider, we offer tax fee protection to eligible BKL clients. This insurance-backed service is designed to cover the majority of the costs of our professional fees in liaising with HMRC.
Having this cover has brought many clients peace of mind – and, for those clients who have been subject to an HMRC enquiry, a considerable reduction in what they would otherwise have to pay.
What is an HMRC investigation?
£46.8 billion (5.3% of total theoretical tax liabilities) is the latest estimated tax gap between what HMRC should collect and what it does collect. This gap has grown from £35.8 billion (4.8% of total theoretical tax liabilities) in the 2021/22 tax year.
To ensure tax compliance and to close this gap, HMRC undertake tax and VAT investigations.
Why would I be investigated?
Possible reasons include: filing a late return, errors that require correction, dealing with cash, HMRC receiving a tip off, or working in a targeted business sector.
HMRC’s Connect database collates data from banks, Land Registry records, Visa and Mastercard transactions, DVLA, council tax, VAT registration documents, Airbnb, and social media profiles.
A common misconception is that a mistake has been made. Often that isn’t the case. Random enquiries can and do happen.
How much does an enquiry cost?
Representing you can easily run into thousands of pounds but will vary from enquiry to enquiry, even if your return is correct and no further tax is due. Immediate professional representation is essential for successfully and quickly dealing with HMRC enquiries, the cost of which is not included as part of your annual fees.
What does BKL's tax fee protection service cover?
Our service will cover the majority of fees up to £100,000 (unless stated below) incurred representing you in the event of any compliance check, visit or investigation started by HMRC regarding compliance with:
- Corporation tax self-assessment
- National Insurance
- Income tax self-assessment
- Construction Industry Scheme
- National Minimum Wage
- IR35
- Gift Aid legislation and regulations
- Capital gains tax
- Inheritance tax
- Stamp duty (including land tax)
- VAT (fees up to £2,500)
- PAYE and P11D (fees up to £2,500)
Where applicable, this service extends to include your directors, partners and company secretaries subject to external income limits.
Full terms and conditions are available here.
What does the service not cover?
- Fraud (COP9 or some COP8 investigations)
- Criminal prosecutions
- Tax avoidance schemes
- Deliberate omissions
- Tax, fines, penalties & interest due
- Enquiries commencing outside of the Period of Service
- Preparation, rectification and/or submission of accounts, records or statutory returns*
*While BKL will still carry out this work, fees will be invoiced to you directly.
Do you have experts in resolving tax disputes?
Our tax risk & dispute resolution team are highly experienced in dealing with HMRC on behalf of individuals, families and businesses. We apply a detailed understanding of HMRC’s approach to risk, enquiry processes and decision-making governance.
We’re experienced in understanding the underlying risks HMRC are trying to address, narrowing the scope of enquiries and progressing matters to conclusion as quickly as possible.
Find out more about our tax risk & dispute resolution services
