Recent activities of the Tax Office now make professional fee insurance against Tax/VAT Investigations essential.
The new investigations start innocently enough by HMRC saying they merely wish to look over your business bookkeeping. This has led people into a false sense of security thinking that it is not a full investigation and catching them off guard.
But as sure a night follows day, something will crop up in this review of the books which turn the whole thing into a much more sinister in-depth investigation.
Why is insurance necessary?
Most accountants are like your local doctor. They deal with the day to day problems and issues that crop up but are not experts in dealing with these new investigations. Like your GP, would you want them doing open heart surgery on you in their consulting rooms? Probably not! You would expect them to refer you to a consultant who does nothing else but the operation you need.
Your accountant is likewise a general practitioner. They may deal with two or three investigations a year, but they are not experts. An in-depth investigation can rack up professional fees of £’000’s.
If you are covered by insurance, you have access to the best consultants available who work hand in hand with your accountant to get the quickest and best result they can without any costs to you.
If you are not covered by insurance, you foot the bills yourself and will probably rely on your accountant. This will not give you the best outcome and will cost you dear in terms of time, fees and tax!
Don’t go another day without this insurance. It is as necessary as car insurance!