One of the most unpredictable and stressful scenarios you can face is an HMRC enquiry. If you’re an individual who submits a tax return, whether you’re self-employed or in a partnership or an established company, HMRC do not discriminate. Any and every taxpayer (individuals or Limited Companies) are at risk of a HMRC enquiry, whether it be VAT, PAYE, Corporation Tax or Personal Tax.  If you submit returns to HMRC, there’s a good chance your tax return will be looked at some point. 

Firstly, it’s important to know that an HMRC tax enquiry can often happen without warning and doesn’t mean you’ve done anything wrong! So, we’d advise you NOT to panic! 

HMRC can trigger an investigation for a number of reasons, due to a late submission or an error in your tax return. Sometimes somebody makes a tip off or it’s most likely a completely random ‘spot check.’ 

How does HMRC flag taxpayers for review?

They use their vast Connect database and pull in data from the banks, Land Registry, Visa and Mastercard, social media, and more to spot inconsistencies.

Even if everything is accurate, the cost of responding to HMRC, managing correspondence, and preparing documentation can quickly mount up and it’s important to realise that these fees aren’t covered by your regular accounting package fee agreement. 

How can the Tax Enquiry Fee Protection Service help your business?  

To help businesses to plan for the dreaded request from HMRC, we offer the Tax Enquiry Fee Protection Service in partnership with Croner-i Taxwise-Protect. This annual service provides peace of mind by covering the professional representation you need if HMRC comes knocking. 

Here’s what’s included: 

• Full representation from Coopers&Co during an HMRC investigation. 

• Up to £100,000 in accountancy fees covered, with no excess to pay. 

• Unlimited access to “My Business Hub”, an invaluable online portal offering guidance, documentation, and telephone advice on employment law, health & safety, and commercial legal issues. 

• Protection across a wide range of compliance areas, including VAT, Corporation Tax, PAYE, IR35, Capital Gains Tax, Construction Industry Scheme, and more. 

• Support with HMRC interventions and ‘nudge letters’, which may not be formal investigations but still require time-consuming and costly responses. 

This is an insurance-backed service that allows Coopers&Co to act swiftly and efficiently on your behalf. You won’t havee to navigate a complex and stressful process alone. 

Do I really need a Fee Protection Service?  

To be honest, this insurance service is like any other insurance. It’s often THE policy that you’re really grateful for once you need to make a claim.  

Even if your affairs are kept in great shape , there’s still a lot more work to do to close out an enquiry. Here’s why signing up makes a lot of business sense: 

• Financial security: Defending a lengthy enquiry can cost thousands. It’s not unusual for an investigation to span two years. This was the case for one of our clients. Although HMRC didn’t make any adjustments to their return – the fees encountered still came to £19,000 in defending the enquiry. Luckily our client had the Fee Protection Service in place, so they didn’t have to bear this cost.  

• No surprise bills: You won’t have to budget for unexpected professional fees should an enquiry arise. See above example.  

• Proactive compliance support: My Business Hub provides immediate access to expert advice in HR, legal, and safety, so the fee covers lots of resources that can help you in your business.  

• Strategic business advantage: Early representation increases your chances of a fast and positive outcome. If you are covered by the Fee Protection Service, we can get started on your investigation straight away. Swift action limits the amount of time an investigation takes. Who wants that hanging over them for years?  

• Discounts for new clients: If you’re new to the service, you’ll enjoy a 25% discount on your first year. 

In the current climate, with HMRC narrowing the almost £40 billion tax gap through more aggressive compliance tactics, no business is too small to dodge scrutiny. 

How to protect my business with the Fee Protection Service 

We know that this is another cost, but having this piece of mind can start from as little as a few hundred pounds a year (depending on your personal circumstances).  

If you’d like to discuss whether the Fee Protection Service is right for you, or to find out more about the annual premium, please get in touch with our team today. 

Next steps

Fill out our short enquiry form to request a callback from the relevant member of our team.

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