Tax Returns to be Read before Enquiries Launched

Whilst we have covered this issue before it is worth reiterating that the Inland Revenue do not necessarily read the file before launching an investigation into a person’s tax affairs. But after seven years of self-assessment, the department has finally agreed that it should do so.

It means that tax offices will no longer be able to ignore explanatory notes entered in the white boxes on self-assessment forms before opening an enquiry.

Taxpayers (and their advisers) who disclose additional information in the spaces provided on returns to clarify changes in their circumstances should no longer be wasting their time.

There is still concern that tax inspectors will still ignore the explanatory notes when deciding whether to query aspects of a tax return. Over 62,000 such enquiries were made by the 1,300 tax inspectors last year.

Nunn Hayward operates a “fee protection scheme” precisely to cover professional fees that would be incurred by our clients in defending themselves from such enquiries.

Key points of the Policy are: -

Will cover you for £75,000 worth of professional fees resulting from: -

• Full enquiries by the Inland Revenue – personal or corporate
  
• Aspect Enquiries – personal and corporate – Cover subject to an excess of £320 and a limit of £5,000; and
  
• VAT disputes – for businesses
  
• Employer Compliance disputes including PAYE/P11D – for businesses

Benefits to you include: -

• Peace of mind knowing that should you experience an enquiry or dispute with the tax authorities, then the fees to deal with the event will be settled under the terms of the insurance policy.
  
• The comfort of knowing that should you experience enquiries or disputes with the tax authorities you will be dealing directly with Nunn Hayward and not a stranger.
  
• Free, unlimited access to IRPC’s telephone advice line, providing advice on Employment and Personnel issues; Health and Safety and Commercial Legal matters – for businesses. If you were to purchase this service direct from IRPC this will cost you over £600 at entry level.

Nunn Hayward will shortly be writing to clients to renew/remind them of this cover. Please take a little time to consider these issues in this ever changing climate.

If you have any queries regarding this article please contact Steve Cook, Tax Partner on either steve@nunn-hayward.com or 01753 888211.