Tax Investigations And Professional Fee Protection Insurance

HM Revenue and Customs are under pressure to raise revenue and are therefore carrying out more and more investigations. They may conduct an investigation on your business or personal affairs at any time and for no reason.

Disputes with HMRC can be lengthy, stressful and costly. The professional fees for attending to all aspects of the work and responding to HMRC’s enquiries can quickly spiral. Even if you are completely exonerated and found to owe no further tax at all, you will still have to pay the professional fees incurred in us handling your case.

Our Professional Fees Protection service offers peace of mind and cover against the cost of professional fees arising out of defending HMRC disputes including those into Personal Tax, Corporation Tax, VAT and PAYE.

We believe that fee protection insurance makes sense and is the best way to protect yourself from these unwelcome costs, should you be selected for investigation. After carrying out research for the renewal of policies for the year ended 31 March 2018, we have been able to secure cover for Edmund Carr LLP which enables us to provide an insurance backed tax investigation service which clients can decide to subscribe for if they wish.

The effect of this is that Edmund Carr LLP will be the insured party and not our clients. The principal difference is that clients will be charged a fee for providing the tax investigation service and will not be charged an insurance premium. As part of our negotiations with insurers regarding this service, we have been able to reduce the overall cost of this service to our clients to below the amounts payable for the year ended 31 March 2017.

We believe the annual costs of the service reflects excellent value for money. The fees for providing the service will be as follows:-

  • Limited companies* and partnerships* - £102.00 incl VAT
  • Sole trader income only (turnover in excess of £15,000) - £82.80 incl VAT
  • Sole trader (with gross rental income in excess of £50,000 pa) – £129.00 incl VAT
  • Personal tax/trust clients (incl sole traders with turnover up to £15,000) - £38.40 incl VAT
  • Personal tax clients (with gross rental income in excess of £50,000) - £84.60 incl VAT

*The prices for limited companies and partnerships include any enquiries for Directors/Partners personal tax returns (where prepared by Edmund Carr) unless their gross income from rental properties exceeds £50,000 or they have self-employment business with turnover exceeding £15,000. In each of these cases an additional fee of £46.20 incl VAT will be payable.

If you require any information on the scheme then please contact Patricia Drain PDrain@EdmundCarr.com

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