Protection in the event of a PAYE or a VAT inspection
Every individual business is at risk of tax investigation.
In the event of a tax investigation our members are covered* with our long standing partner DAS.
The complexities of the tax system can prove really challenging.
Regardless of how well you or your accountants' complete your tax
returns you can still end up involved in a dispute with HMRC. A tax
investigation can be carried out for absolutely no reason at all and
random spot checks are undertaken to help ensure businesses are paying
the required amount of tax.
HMRC can
investigate a business at any time, even years after it has closed. On
average, an investigation takes around 16 months.
These
disputes can be expensive, time consuming and stressful, so make sure you're protected.
To report a tax investigation click on the button below.
Report an investigation
The average accountancy bill for a tax investigation is around £6000 and this is without any penalties or monies owed which you may have to pay to HMRC.
This type of protection will often cost a business £150 if purchased individually. That's why ACT membership includes commercial tax protection cover as standard for Silver and Gold members. Which means you can benefit from comprehensive cover without any additional costs.
The table below gives you an idea of what accountants will normally charge businesses for the same cover that is included as standard as part of the ACT membership.
An example of an accountants charging structure for Tax Investigation Protection
| |
NET
|
VAT
|
TOTAL
|
|
Individuals
|
50.00
|
10.00
|
£60.00
|
|
Sole Traders and individuals with a
rental income > £50,000
|
100.00
|
20.00
|
£120.00
|
|
Businesses and companies with a
turnover less than £250,000
|
150.00
|
30.00
|
£180.00
|
|
Businesses and companies with a
turnover greater than £250,000 but less than £5
million
|
250.00
|
50.00
|
£300.00
|
|
Businesses and companies with a
turnover greater than £5 million and less than £10
million
|
450.00
|
90.00
|
£540.00
|
|
Businesses with a turnover greater
than £10 million
|
|
|
On
request
|
DAS are Europe's leading legal expenses provider and the people behind the ACT helplines, employment manual and business law services. In the event of either a full investigation into your business or simply an enquiry into a particular aspect of your tax return, all accountancy and other legal costs are covered. The policy also provides cover in the event of either PAYE or VAT disputes.
HM Revenue & Customs now have targets for the number of enquiries to be undertaken and amount of unpaid tax to be recovered, the chances of being involved in a tax investigation are increasing.
"My business was investigated in October 2010 and I'm really pleased I
had the Tax Investigation protection in place through my subscriptoin.
The investigation would have cost me £6000 - ActSmart's Tax
Investigation policy covered this cost and with a 1 in 10 chance of
being investigated my subscription fee of £250 per year is more than
covered by this benefit of subscription alone".
Stuart Meanwell, Bike Zone Oxford
Tax investigation protection is available to ACT Silver and Gold members as standard. You do not need to register
for this service.
To report a tax investigation click on the button below.
Report an investigation
