TAX INVESTIGATION SERVICE SUMMARY
We are pleased to introduce you to an exciting new service now offered by Holland & Co which can provide both clients and non clients protection against a potential investigation by the Inland Revenue.
When you subscribe to our service we are able to make a claim against our insurance policy held with Professional Fee Protection in respect of our fees incurred when we defend a client who is subject to any of the following events:
A Full Enquiry – This is an extensive examination which
considers all aspects of the self assessment tax return. It
will involve a comprehensive review by HMRC of all 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 FA 1998.
An Aspect Enquiry – This is where HMRC enquires into
one or more aspects of the self assessment tax return
which may involve clarification of particular entries, to
detailed consideration of whether those entries have been
treated correctly for tax purposes. It may involve a check
on the records upon which the particular entries were
based. It will also feature the issue of a notice under S9A/
S12AC TMA 1970 or paragraph 24(1) Schedule 18 FA 1998.
A Business Inspection Notice – This is where HMRC
exercise their power to request entry to a person’s
business premises and inspect the business premises,
assets, goods and documents. It will feature the approval
of an “authorised officer” of Revenue & Customs and the
issue of an Inspection Notice for a short notice or
unannounced visit or where the proposed inspection has
been approved by the First-tier Tribunal. Routine business
inspections which have not been approved by an
“authorised officer” are NOT covered by this policy.
VAT Disputes – This is a challenge by HMRC to the
accuracy or completeness of returns submitted. It will
feature a disagreement over both the way in which VAT
has been operated and over the amount of VAT due.
PAYE/NIC Disputes - This is a challenge by HMRC to the
accuracy or completeness of returns submitted in
accordance with Pay As You Earn Regulations. It will
feature a disagreement over both the way in which PAYE
has been operated and over the amount of PAYE/NIC due.
PAYE/VAT Compliance Visit Cover – This is where HMRC
wish to carry out a routine PAYE/VAT Compliance Visit
where it is agreed that professional representation is
necessary and the matter cannot be dealt with by the
client alone. The limit of indemnity is £1,000 per claim
Pre-Dispute Cover – This is where it is considered
necessary to involve us following a routine inspection/
compliance visit by HMRC. Pre-dispute cover is limited to
a maximum of £1000 and will not extend to attendance
at the initial compliance visit.
IR35 Disputes – This is where HMRC states a client should
be subject to the IR35 legislation following a PAYE
compliance visit or the issue of a notice under paragraph
24(1) Schedule 18 FA 1998. It will feature a disagreement
over whether this legislation applies.
Code of Practice 8 Investigations – This is where Special
Civil Investigations of HMRC launch an enquiry and issue
Code of Practice 8 Booklet. The limit of indemnity for SCI
cover is £5,000.
Application for a Judicial Review – This is an application
(during the course of a valid claim under the policy) to
the Administrative Court to challenge a decision of an
official where no other legal recourse is available to the
applicant. The limit of indemnity for SCI cover is £5,000.
Partners/Directors Cover – Where a partnership or
limited company join our Tax Investigation Service we
may also make a claim in the event of either an aspect or
full enquiry into the personal returns of the partners and
directors and their spouses and company secretaries. This
automatic cover will not extend to rental income in
excess of £50,000 per annum (before expenses) or any
other business activities.
The Main Exclusions in our policy are as follows:
• The cost of making good any deficiencies in books,
records, accounts or returns.
• Claims which originate from any matter which
existed before the first period of insurance except
where full disclosure has been made to us and the
increase in risk has been accepted by us in writing.
• Returns which have been submitted more than 90
days late.
Full details available on request.
As a subscriber to the service you benefit from the client legal help line.
• Advice from a dedicated call-centre by a team of legal consultants,
barristers, solicitors and legal executives
• Unrestricted access to use the service
• You can call regarding any commercial legal problem:
• Legal contract matters
• Landlord and tenant or property queries
• Employment and health and safety matters
• A significant feature of this service is its immediacy
While the service is essentially provided by telephone, consultants will enter into
correspondence with members where necessary. This could entail looking at any
documents, which may be essential for the consultant to consider prior to giving
advice, for example, contracts of employees, leases etc. Please note that the
service does not extend to corresponding with third parties, only with the
individual about their legal rights.
Client Legal Helpline
24 hours a day, 365 days a year
Contact us now for details:
or tel 0151 420 6666