Tackling Tax Enquiries: Why Protection Matters

Navigating the labyrinth of the tax world is no simple task. Add to this the possibility of HMRC tax enquiries, and the journey becomes even more intricate. But before you start stressing, it’s essential to understand that having the right support can make all the difference. At Lewis Brownlee, our clients can benefit from signing up to our Tax Investigation Service, which has been instrumental in already helping so many out. Don’t believe us? Here are a few recent case studies we have encountered where the value of our Tax Investigation Service really shines through…

Case Study 1: The Overdrawn Director’s Loan accounts

The directors of a large construction caught HMRC’s attention due to having significantly overdrawn director’s loan accounts. Whilst it isn’t usually wrong to have overdrawn loan accounts, the authorities see it as a warning flag. So, it raised the chances of an enquiry. Once instigated, this particular enquiry didn’t just stop at the company but extended to the directors’ personal finances as well. Unfortunately, the company was not part of any fee protection scheme. So, the result? Due to the protracted and detailed nature of the enquiry, a lot of time was spent on the matter. Consequently, this led to a significant amount of professional fees.

Case Study 2: The Builder’s Ordeal

HMRC’s antennas went up when they grew suspicious of a self-employed builder they believed to be receiving undeclared cash payments. What followed was an extensive, invasive, year-long investigation. In the end, the builder was vindicated, with no errors found on his return. However, having not been part of our protection scheme, he was faced with an accountancy bill running into thousands.

Case Study 3: Furlough Support Enquiries

The recent pandemic saw many businesses relying on furlough support grant claims. We’ve had several clients under this category receive enquiries from HMRC. The silver lining? All these clients had our fee protection cover. We stepped in, offering robust assistance, directly dealing with HMRC, ensuring a smooth process. Best of all, the majority had no expenses from their pocket, thanks to our scheme’s underwriters covering our fees.

Case Study 4: The Complex Return

A significant capital gain paired with a substantial claim for tax relief on a client’s tax return landed them in the HMRC enquiry zone. HMRC, armed with a plethora of queries, sought detailed supporting information. Thankfully, the client was under our fee protection cover. After significant back and forth, HMRC was satisfied. So, what was the end result? Zero fees for our client, as everything was covered by the underwriters.

Why Our Tax Investigation Service?

These cases shed light on the unpredictable nature of tax enquiries. By opting for our Tax Investigation Service, you benefit from:

Expertise: Our seasoned team navigates the complexities on your behalf.

Protection: You’re shielded from potentially high accountancy fees.

Peace of Mind: With our fee protection cover, most of our clients pay nothing out-of-pocket, even with the most intricate investigations.

In the ever-changing landscape of taxes, it’s not just about paying what’s due but ensuring you’re protected if tax enquiries arise. So, reach out to us and discover how our Tax Investigation Service can be your fortress against unforeseen tax storms. We’re always happy to help!

If you’d like to speak to one of our experts about your accounts, please call 01243 782 423, or email from our contact page and we will be in touch!

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