Tax Enquiry Protection for Consultants
HMRC have got consultants in their sights!
They consider the mix of private practice, NHS work and locum consultants to be a high risk area. The more complex the mix of work the more opportunity there is for errors in the tax paid, which of course makes Consultants a good prospect for investigation, from HMRC point of view.
Consultants are under the spotlight due to the introduction of the ‘Off-payroll’ working rules in 2017, the use of ‘Contractor Loan’ schemes by some consultants and tax cases restricting consultants’ business expenses such as ‘Samadian’. In some cases HMRC are now assessing consultants for VAT on their private earnings.
Should I insure against a tax investigation?
As a measure of our concern about the increased frequency and cost of tax investigations, we recommend insurance to meet the costs of professional fees which are incurred in any tax investigation.
If a consultant has a tax investigation we will deal with the matter to ensure that the outcome is as favourable as possible.
Even if HMRC find no tax due, you will have costs to pay
Even if the result is that no extra tax is payable, there will be significant additional costs to meet. Just responding to the HMRC enquiries and making available the information they may demand will cause additional work.
We therefore recommend that all our consultant clients take up our Tax Enquiry Protection insurance.
If I am covered, what happens?
For an annual subscription the insurance will enable us to dedicate as much time as necessary to get the best result for the consultant.
If you have a tax investigation launched against you by HMRC then we will deal with the matter from the initial enquiries right through to resolution and ensure that the outcome is as favourable as possible to you.
Protect yourself today
If you would like more details of this insurance please contact us.