Humphrey & Co
Tax Investigation Service
This page has been set up to manage the administration of our Tax Investigation Service (TIS).
Humphrey & Co have offered a Tax Investigation Service (the 'Service') to our clients for several years now, and we invite all our clients to share in the protection offered.
Essentially the Service protects you from the cost of our fees in assisting you in the event that H M Revenue and Customs (HMRC) visit, or ask questions, about your personal or business tax affairs (subject to scheme limits).
The level of protection is extensive, and you could not only enjoy the benefit of our expertise at no cost in assisting with any form of tax enquiry, but also assistance with all variations of HMRC inspection or compliance visit into VAT, PAYE, National Insurance, CIS, tax credits, student loans and Gift Aid amongst others. No excesses apply and more detail about exactly what is included can be found on the resources section below.
In certain circumstances we can even include Tax Returns that have been filed after the appropriate deadline. Please see our FAQ’s for more information.
There are four different options available, and the correct one will depend upon whether or not you run a business, and if so, the legal status of your business (see below).
Why should I consider this?
It is our view that the Service represents best commercial practice for our clients, because:
- Our fees in defending you against an enquiry are likely to cost you considerably more than the premium to join;
- Many Tax Returns are selected for enquiry at random or as an indirect result of information found on forms submitted by other taxpayers;
- Experience shows that year on year enquiries are on the increase in terms of both numbers and complexity;
- Over 80% of all tax investigations by HMRC now arise from leads generated by its £80million database system, Connect, according to recent reports. The new reliance on automated systems to identify targets means taxpayers face increased risk of an investigation. Connect was first launched in 2010, to gather data and information from multiple sources, including banks, local councils, land registry and even social media;
- Where applicable, the business owners' personal Tax Returns (and their partner's) are usually also included within our Scheme;
- Our tax experts continue to act throughout the enquiry (i.e. no third parties are drawn in who are unfamiliar with your business and tax affairs);
Which option is correct for me?
For further details about the cover offered and annual costs, please navigate to the correct page, as follows:
Once begun, HM Revenue & Custom's (HMRC) enquiries may be lengthy & complex.
Private Client Scheme
The environment surrounding H M Revenue & Customs (HMRC) enquiries has changed considerably and new methods and increased powers mean HMRC are more determined to claw back money from tax payers. The discovery of a simple, unintentional error causing an underpayment of tax may lead to you paying HMRC large penalties as well as repaying all the tax you are deemed to owe.
If you are chosen for an investigation, we will do our utmost to ensure that the outcome is as favourable for you as it can be. In most cases, we will be able to reach a settlement with HMRC that is considerably lower than their original demand; in some cases we can convince them to withdraw their claim altogether.
However, this can take a considerable amount of time and, even if no additional tax or penalty payment is due, we will still have to charge you for the professional fees incurred in dealing with HMRC on your behalf; such fees frequently amount to hundreds of pounds.
Another benefit of our Service is that you will continue to deal with us, the accountants who know you, and we will therefore be able to work on your case for as long as it takes to resolve the situation, up to a limit of £100,000. There is also no excess to pay.
The annual cost (including VAT) depends on the month in which you join the Service. All clients have the same renewal date (1 December), so the premium decreases the later in the year you join (subject to a minimum charge). These costs are as follows:
|1st Jun onwards||40.00|
All subscriptions expire on 30 November when you will be invited to renew. To proceed please contact us.
If you require further information relating to our Tax Investigation Service please contact Anthony Smith.
Please note that if you run a business (as a sole trader, partner or director), it is more than likely that your personal Tax Return will be covered under the business service.
Resources & FAQ's
Frequently Asked Questions
Some questions from clients recur on a frequent basis, and we have listed these below. We will add to this list over time.
- an incorporated business
- a partnership (including limited liability partnerships)
- an individual who is required to complete the self employment pages of a Tax Return and/or
- an individual with income from Furnished Holiday Lets
- an individual who completes the Lloyd's Underwriters pages of a Tax Return
- an unincorporated trust as regards its trading activities
- an unincorporated charity as regards its trading activities
- an unincorporated non-profit organisation as regards its trading activities.
- an individual not falling within the definition of a business client
- a trust with no trading income
- a charity with no trading income
- a non-profit organisation as regards its non trading activities.
Protection needs to be arranged for each entity completing and filing a tax return exposed to enquiry or intervention. For example, a group made up of a parent company and three subsidiaries, all of which complete a tax return, would need to have cover in place for all four of them individually to be fully protected.
Larger businesses can still be covered within the Service, but you will need to contact us for a quotation.
We recommend that you check that your cover is adequate to meet your needs as we have experienced that this inclusive type of cover provides 'low cost, low level' protection.
For instance, we have found such cover excludes some of HMRC's new powers, may include an excess payment, and most importantly will not allow Humphrey & Co to defend you (they will use an in-house team). This team will not have the same level of knowledge about how you and your business operate and have been known to settle early to minimise their costs. In contrast, we continue to fight relentlessly for our clients until we are 100% satisfied we have reached the best solution (as all of our fees are covered).
If appropriate, we would be happy to compare any third party policy to ours to demonstrate the key differences, please just contact us.
Providing we complete both the Tax Returns and are the appointed tax agents, then yes they are included. This equally applies to partnerships and their partners/spouses returns too.
No, provided we prepare the Tax Returns there is no limit. Company Secretaries' returns are also covered under a corporate subscription.
All VAT Registered clients can claim back the VAT element (a VAT receipt will be issued for this purpose), but regrettably the remaining cost is not allowable for income/corporation tax purposes under existing legislation.
A limited company policy.
The policy will cover non-resident landlords assuming they are properly registered under the NRL Scheme and complete a UK Tax Return.
Yes providing they complete a UK Tax Return. The scheme will only cover an enquiry/visit relating to the entities’ UK tax affairs.
Yes – although the scheme will only cover an enquiry relating to the individual’s UK tax affairs.
Cover will still be in force providing the Tax Return, or the amended Tax Return, is submitted within 90 days of the statutory filing date. Submissions after this period will not be included unless HMRC accept the reason for the delay.
If you are trading as a sole trader (or partnership), have joined the scheme and subsequently incorporate to a limited company, you potentially have two separate businesses to include.
However, there is no requirement to have two separate services running simultaneously to keep full protection in place.
At the renewal following incorporation, you will need to upgrade to the company scheme. If you do this we will ensure protection also remains in place for the sole trader (or partnership) in run-off, until the normal enquiry window closes following submission of the final tax return, at no extra cost.
We will also ensure the newly formed company is included between incorporation and the renewal date where the upgrade is taken.
In order to enjoy the benefits of the service you would need to be a client of the firm at the date of any intervention by HMRC. So, for example, if you transfer your affairs to another practice, and then receive an enquiry notice a week later concerning a Tax Return we prepared for you, this would be excluded from the service.
Equally, after you have become a client of the firm, if you receive an enquiry concerning a Tax Return submitted by our predecessors, this would be included in the Tax Investigation Service.
Refunds on cancelled policies will be subject to an administration fee equivalent to the minimum charge on a private client policy.
When a client on the Scheme passes away, if they have subscribed under their own name, the protection continues until the normal expiry date, effectively passing to the Executors who will administer any final self-assessment Tax Returns required.
If the Executors wish to include any Trust and Estate Tax Returns, they would require a separate subscription.
Response & Contact
If you would like to enjoy the peace of mind offered by the Tax Investigation Service, please complete the form below and we will then write to the address specified or email you to obtain final details and payment.
We accept payment by Direct Debit only. If you do not have a suitable bank account for this purpose and wish to pay by another method, please let us know in the additional information box below. Information about costs can be found on the business or private client sections above. The service will not commence until we receive your payment in full.
For further information about the Service, or to contact us for any other reason, please email us. Alternatively, please contact Julie Macefield at our Eastbourne office for queries regarding the Scheme’s administration, or contact the partner who normally deals with your affairs for cover related queries.
(new applications only - not renewals)