Can anyone say what the cost of an HMRC investigation into an individual’s tax affairs that they know of has been, apart from any fines?
I received details of a “Tax Investigation Service” from my accountants, giving details of an insurance scheme to cover representation and expenses up to £100,000. (It covers more for businesses but individuals pay the same annual fee of £60.)
The scheme is run in partnership with Croner Taxwise. The accompanying letter says “When you are chosen for investigation”… [“when”? Do they know something I don’t? Surely “if” covers the point] “… we will assist you every step of the way…”
It points out that individuals and SMEs account for over half of the £33bn tax gap and that HMRC is actively encouraging people to snitch on suspected offenders, while it continues with investigations that are purely random. Outrageously, victims have bear the cost, guilty or not.
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