Fee Protection

Could You Afford A Big Tax Investigation?

Since the introduction of self-assessment, HM Revenue and Customs (HMRC) has increased the regularity of its tax enquiries. In 2008 an additional £12.8billion in tax revenues was collected as a result of this and the current economic climate has put the Government under more pressure than ever to raise additional funds. Furthermore, new powers introduced in April 2009 give tax authorities the power to knock on the door of all businesses without warning.

HMRC does not have to give any reason to justify opening an enquiry and some cases taxpayers are selected entirely at random. Rickard Keen will, of course, deal with any enquiries on our customers’ behalf, but the costs involved can be considerable, meaning we would normally need to charge additional fees.

However, there is now an alternative option – we have taken out a policy, in our own name, which will pay our costs on behalf of our clients if they are subject to a full or partial enquiry into their financial affairs. This includes disputes over VAT, PAYE, National Insurance, IR35, Pre-Disputes and Schedule 36 Intervention Notices.

The policy also provides clients with unlimited access to a free, 24-hour legal helpline, offering advice on many aspects of the law as it affects business.

While we have previously been able to arrange for clients to have appropriate external cover, becoming the policyholder ourselves has allowed us to provide enhanced protection at a more competitive rate. We make claims under our policy in respect of our professional fees, but clients will be responsible for any fees that we cannot recover from our insurers.

Business premiums include personal cover for Sole Traders, Directors, Partners and Company Secretaries. However, cover will not extend to any other business activity in which they are engaged, nor will it include enquiries into rental income in excess of £50,000 per annum (before expenses) unless this option has been selected.

For more information, or for details of our pricing structure, please contact Keith Bell on 01702 347771 or email keith.bell@rickardkeen.co.uk.