Tax investigation?

fastdave · 16-04-2011, 10:39 PM

My accountant is trying to get me to pay £99 for 1 years service of a tax investigation protection/legal costs coverd. Im reluctant to say the least, is it worth looking at these policies?, surly if i did get an investigation then i have legal rights and they cant push me about so to speak!

Anyone have any thoughts on this??

Thanks again!

Dave

Parmdeep Vadesha · 17-04-2011, 11:52 AM

Hi Dave,

HMRC randomly investigate a % of companies each year so it's quite normal to have one. If you keep really good records you have nothing to worry about in my experience, unless you are up to something which I'm sure you are not

Simple things that we do in our business;

- use separate credit cards for different businesses
- scan all property paperwork and place on the cloud for easy reference later
- have a separate debit card for personal expenses
- track mileage carefully
- do monthly accounts instead of one big rush to get everything together once a year. you will be better informed about your business and there will be no nasty surprises later

Andrew de Gruyther · 17-04-2011, 01:18 PM

Dave Hi again!
Take a look at the 'Federation of Small Businesses' (just google FSB) it's worth being a member even if only to have their backup in this situation. They say "if the taxman comes calling then don't let him over the doorstep, tell him the FSB will deal with it", this takes the pressure off, they then send a tax accountant around to go over your books and deal with the tax man on your behalf F.O.C. Take a look at the presentation for the 'Legal Benefits Package' on their website.There are lots of other benefits as well like free business banking with the co-op bank!
Cheers, hope this helps.

fastdave · 19-04-2011, 07:47 PM

Thanks for the replies.

Hey andy, i was a member of fsb last year but didnt renew my policy as my funds are really tight, has anyone actually been investigated and used fsb services?, im not a big fan of paperwork but i relise its very important and keep a big box file and then bribe my girlfriend with drinks or a takeaway to sort it all out in date order!, if i go for any policy it will probably be with fsb again as you do get lots of other bennefits.

Do you use the free banking facility andy? anygood?

Thanks again (see you at next prop meet, oh and i owe you that pint for the LHA tips)

Dave

Kevin Geer · 20-04-2011, 08:29 AM

I have two businesses and so had to pay twice. Though I found it an annoying expense if I was to get investigated I want to feel that no corners are being cut in my defence. The chance of an investigation is now higher since the change of government last year.The bill for accountants time never mind any outstanding tax (they are not happy unless they find something) can be quite considerable so in the long run I feel happier having the insurance.

Jonathan_D · 20-04-2011, 10:37 AM

You can get the insurance for free as a member of NLA:
Taxation Investigation Insurance | National Landlords Association

cheers
Jonathan

DebbieB · 18-05-2011, 03:02 PM

Its not only whether you're hiding anything, but can you be bothered to sit with an Tax Inspector at a time of his chosing, for days at a time explaining each and every receipt? They can go back years if they feel like it.

I'm also with NLA for about £100 a year so insurance is included and a free legal helpline. Peace of mind!

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