In the earlier stages of this year, HMRC dialled down compliance checks and follow-ups, as we all worked frantically to adjust to a rapidly changing business landscape.
While many employers continue to face restrictions, make use of the furlough schemes, and operate with postponed payment due dates, that does not mean that HMRC is going to stay silent for long!
Many taxpayers have enjoyed payment holidays, compliance extensions and an easing of pressure while normal operations were suspended.
However, we're about to see a swift turnaround in that more subdued attitude, as the tax office faces significant cost burdens of the pandemic, and begins to reawaken with a vigorous push to recoup missing funds.
Why HMRC Compliance Demands are Ramping Up
SAS Accounting offers a cost-effective and robust HMRC Fee Protection Insurance. This cover means that, should you find yourself facing a repayment claim, or a potential investigation, you have a contingency that will cover the costs of compliance.
Over the last few months, we have seen a dramatic change, with claims throughout the first lockdown being of a low level.
As HMRC works hard to catch up, the volume of claims is rapidly increasing, and are now at a higher level than anybody would have expected before the Coronavirus crisis.
There are multiple scenarios in which an HMRC investigation, fine, or repayment might become business-critical:
- Employers who have made use of the Coronavirus Job Retention Scheme (CJRS) are receiving repayment claims due to errors or omissions.
- Businesses are required to evidence the accuracy and legitimacy of their CJRS claims, which can be a significant burden on time.
- Companies still operating under restrictions are likely to have reduced capacity, and lower staffing levels, making it a difficult period to have an additional workload to comply with HMRC demands.
- Many firms who have been subject to investigations may now have seen a sudden resumption of that activity, meaning that immediate action is required to resolve any ongoing queries or disputes.
It seems likely that, as the pressure to recoup lost finances mounts, HMRC will continue to add strain to businesses, which are possibly in the worst possible position to be able to respond.
How HMRC Fee Protection Insurance Can Help
Our insurance is designed specifically for small businesses, which don't have the time, budget, or human resources to dedicate hours to fulfilling urgent compliance demands.
This cover applies to a wide range of situations:
- Tax or VAT enquiries.
- HMRC audits and investigations.
- Insurance against National Insurance and PAYE audits.
- Income tax and Child Tax Credit enquiries.
- CIS investigations and IR35 checks.
- Corporation self-assessment return investigations.
Your cover also provides financial protection from the costs involved with any dispute from HMRC concerning calculations, assessments, decisions, penalty notices, and underpayment demands.
If you find yourself subject to any compliance check or audit, your fee protection cover provides a substantial limit of £100,000 insurance. This value provides professional support and representation from the SAS team of experienced, accredited accounting professionals.
Is HMRC Fee Protection Insurance an Affordable Option?
When we created our HMRC Fee Protection Insurance, we wanted to provide a level of cover that would support businesses in completing any compliance audit or investigation, without the stress and financial costs that can be damaging to small companies.
As such, our fee structure is simple, affordable, and uncomplicated:
- Private Clients pay a £65 premium.
- Business Clients pay a £115 premium.
The SAS Accounting team works on your behalf to evaluate any claims, produce documentation and returns, and liaise directly with HMRC to smoothly resolve any queries while allowing you to focus on running your business.
At a period when HMRC looks to be focused on recouping all potential repayments, investigating vast numbers of valid claims, and resuming audits that had been temporarily paused, now is a crucial time when HMRC Fee Protection Insurance might make all the difference.
Visit our detailed pages online for more information about the terms of cover, the protection we offer, and how to sign up today to safeguard your business.