In 2019 HMRC raised around £2.2Bn from tax checks, investigations into tax returns. In 2020 this amount doubled, yes doubled, to around £4Bn! That is a huge amount, and it’s expected to get even bigger in 2021 and 2022. Note that this is extra tax over and above what the various taxpayers expected to pay – so HMRC are certainly taking tax seriously for the coming years
Tax Investigations
HMRC is always serious about your tax bills – and looking for opportunities to get you to pay more. However HMRC now have all the added pressure of getting in more tax to pay the bill for Coronavirus! The first point in protecting yourself is to make sure you (or your accountant) has tax investigation insurance.
Tax investigations are grief, hassle and expensive. Even if they don’t end up with a big additional tax bill they can cost a lot in fees for your accountant to go into bat and defend you from the taxman. Getting fee protection or tax investigation insurance is a no-brainer.
Check and Double-Check
The second point is to make sure that the obvious stuff is not only done properly but checked. Who checks your VAT return for example? What other areas of your business or personal tax need review?
Clear Out Those Skeletons
Finally, what might you be doing that could be considered dodgy? Is there a skeleton in your cupboard that you need to resolve before that HMRC brown envelope drops through your letterbox?
At JVCA we have been taking tax seriously for years and offer our clients tax investigation insurance as a basic precaution. If you don’t feel safe about tax then get in touch so we can help you.
