Taking Account

Subscribe to our monthly e-newsletter.

  • Taking Account

HSC Tax Investigation Service

October 2007

If you are a client and have not received a renewal notice or invitation to join our scheme then please read on:-

The HM Revenue and Customs are chanelling more resources into collecting Tax and VAT and as a result you will be more likely than ever before to face an enquiry. Defending clients in these circumstances can be costly and disputes can drag out for several months. Even if no additional tax is found to be due, you or your business could be faced with significant additional costs. This year for the first time we are able to offer protection against aspect enquiries which is an enquiry into one or many parts of your affairs rather than only full enquiries.

As a practice Hilton Sharp & Clarke have for some time been offering a scheme to protect our clients. We have taken out an insurance policy in our own name, which will support this service. It pays for our costs for those clients who subscribe to our service for dealing with any of the following events:-

HM Revenue & Customs Full Enquiry An extensive examination that considers all aspects of the self-assessment tax return. Involves a comprehensive review by HM Revenue and Customs of all the books and records underlying the entries made on the return. It will also feature the issue of a notice under S9A/S12AC TMA 1970 or Paragraph 24 (1) Schedule 18 Finance Act 1998.

HM Revenue & Customs VAT Dispute A challenge by HM Revenue & Customs to the accuracy or completeness of returns submitted. It will feature a disagreement both over whether VAT has been operated correctly and over the amount of VAT due.

HM Revenue & Customs PAYE & NI Dispute A challenge by HM Revenue and Customs to the accuracy or completeness of returns submitted in accordance with Pay as You Earn and Social Security Regulations. It will feature a disagreement both over whether PAYE has been operated correctly and over the amount of PAYE./NIC due.

An Aspect Enquiry An enquiry by HM Revenue and Customs into one or more aspects of the self-assessment tax return. This may involve clarification of particular entries, to detailed consideration of whether those entries have been treated correctly, for tax purposes. It will feature the issue under S9A/A12AC TMA 1970 or paragraph 24(1) schedule 18 Finance Act 1998.

Hilton Sharp & Clarke are the policy holders and we can make claims under our policy to a maximum of £75,000 in respect of our Professional Fees for any one claim. Clients will be responsible for any fees that we cannot recover from our insurers.

The main exclusions in our policy are as follows:

  • £250 excess on Aspect Enquiries - (no excess on Full enquiries)
  • The cost of making good any deficiencies in books, records, accounts or returns
  • Claims which originate from any matter which existed before the period of insurance
  • All returns must be submitted no later than 7 days after the statutory filing deadlines
  • Arrears in clients’ tax affairs
  • Special Civil Investigations Unit Enquiries

To find out more or subscribe to this service please call or email Markdennis@hsc.uk.net.

Hilton Sharp & Clarke