Here is a list of frequently asked questions about our tax investigation service. If you still have questions, please contact us for more information.
*Richard Grimster, Head of Tax for Price Bailey discussing why TIS is an important service for clients moving forward.
HMRC have been particularly vocal about their wish to close the ‘tax gap’, a £30bn deficit seen each year between the tax they estimate should be collected and what they actually collect. HMRC estimate that around 50% of this figure is underpaid tax by small businesses, of which they wish to considerably reduce.
They note an increase in the number of investigations planned in the coming years which will ultimately impact our clients. The two biggest detrimental impacts of an investigation are the time spent by management on it and the costs associated in progressing the investigation and the defence.
By including TIS as part of our wider services we are supporting our client base through navigating changing times. The Partner team believe that the security provided by TIS will be very welcomed by our client base, who generally have quite simply tax affairs, as they plan for the future.
As a beneficiary of TIS you are not purchasing an insurance policy. Price Bailey LLP have purchased an insurance product directly and allowing clients to benefit from this.
In the event of an investigation by HMRC, subject to it being an investigation covered by the service, the cost of Price Bailey’s time supporting and defending you against the investigation is covered up to the value of £125,000.
At the time you receive correspondence from HMRC, it can be sent to your Price Bailey contact who will gain an initial assessment of the work involved in responding and defence from our Tax Investigations Partner. We liaise with our insurer for you and ensure acceptance is gained prior to any works being completed.
TIS for businesses provides for the named entity and associated directors/ members, so long as Price Bailey complete their tax return and they conform to the standard terms and conditions.
TIS for business provides for the named entity and associated directors / members, so long as Price Bailey reviews or completes their individual tax return and they conform to the standard terms and conditions.
Full and aspect enquiries into:
Use of Information and Inspection/ Schedule 36 pre-disputes involving
Code of practice 8 enquiries
Inheritance tax enquiries
Stamp Duty Land Tax/ Land and Buildings Transaction Tax/ Land Transaction Tax use of Information and Inspection enquiries
As well as other areas, full terms and conditions can be read here.
Payroll clients benefit from:
We understand that this can be an anxious time, with TIS you are able to hand off the initial review to us. First step is to make contact with your usual Price Bailey contact. They will engage our Tax Investigation partner Andrew Park, who will technically review the initial correspondence, consider a response and build a plan to counter.
We will gain acceptance for our professional fees to be covered on your behalf prior to any works being completed.
No, you are not being supplied an insurance product. Price Bailey offer this service to clients and will gain acceptance that fees will be covered prior to starting any works.
Yes, if you receive correspondence from HMRC regarding a new enquiry and are an engaged Price Bailey client, and we now hold the 64-8 (the ability to be able to liaise with HMRC on your behalf) then you should be covered for previous financial year’s tax returns on the same terms.
The complexity of your tax affairs does not always directly impact the work or time involved in an investigation. Even an aspect enquiry (an enquiry into a specific area of tax rather than a full investigation) can still take 2-3 months to conclude and require correspondence and data gathering as part of the process.
Yes, HMRC have been very open in their attention on recovering fraudulent or miscalculated COVID grants.
TIS provides cover for Coronavirus Job Retention Scheme (CJRS) investigations, and Self-Employment Income Support Scheme (SEISS) investigations.
A huge amount of information is required as part of these investigations, and due to the speed in which HMRC produced the guidelines some areas are up for interpretation, which can require specialists advice to interpret and defend. TIS allows us to support in collating information and defending your position, without the worry of additional cost.
Yes, HMRC target 300,000 self-assessments for compliance checks every year.
Unfortunately only engaged Price Bailey clients are eligible for TIS. If you would like someone to contact you about the service that please provide your detail on our enquiry form.
TIS is an addition to your current services. An invoice will be supplied in the same manner as our other services. This can be paid by:
To pay by direct debit or card please visit our payment site.
No, to be eligible for TIS you need to be an engaged Price Bailey client at the time correspondence is received from HMRC. We also need to be authorised to talk to HMRC on your behalf (hold the 64-8).
TIS for business provides for the named entity and associated directors/ members, so long as Price Bailey complete their tax return and they conform to the standard terms and conditions.
The amount of cover depends on the type of investigation, a limit of £125,000 is in place for the majority of investigations
Full and aspect enquiries into
Use of Information and Inspection/ Schedule 36 pre-disputes involving
A £5,000 limit is in place for
Payroll clients are specifically covered for employer related investigations:
TIS is designed to support with routine investigations. Therefore the Civil Investigations of Fraud, Criminal Investigations Sections, Fraud Investigation Service and Counter Avoidance Sections are not covered; as aren’t cases launched due to suspected fraud.
As auditors we are required to maintain independence from the companies which we audit, meaning we are unable to provide some services to audit clients.
It is at the discretion of your audit partner to what extent we are able to help with an investigation. If we are concerned that our independence may be comprised due to the level of work involved, then it may be suggested that another professional services firm be engaged to complete the work. The third party will engage directly with you, but subject to prior approval, the fees associated covered by TIS on the same terms.
Full terms and conditions explaining what is covered can be read here.
TIS for business, both audit and non-audit clients have access to an additional benefit. A 24hr legal advice line. With 70+ barristers and solicitors available to discuss topics such as:
Commercial aspects including
Call 0333 920 3499 24/7 365 days a year and be one of 250,000 business owners that are advised by the helpline every year.
Contact us today to find out more about how we can help you