HMRC possible inquiry mitigation

[SandyD]

Hi there, can anyone give advise on how I can mitigate a possible inquiry ? I haven't been part of any tax avoidance scheme, but my accountant made a few mistakes last year, I had a personal crisis so wasn't able to review and revise figures as I did in the past. The mistakes required very little extra payment like a few hundreds only, and honestly even if I had overlooked his submissions I think I would have missed it myself, but now the accountant tells me my profile hits the HMRC target of opening an inquiry.

Is there anything I can do to mitigate it? Should I get insurance/ legal advise, I have the usual indemnity and employer's insurance, but not HMRC investigation insurance that used to come with the old contractor union thingie (is ipsa now?? forgot the name) which I used to have a long time ago before they made all the changes.

[cojak]

Hi there, can anyone give advise on how I can mitigate a possible inquiry ? I haven't been part of any tax avoidance scheme, but my accountant made a few mistakes last year, I had a personal crisis so wasn't able to review and revise figures as I did in the past. The mistakes required very little extra payment like a few hundreds only, and honestly even if I had overlooked his submissions I think I would have missed it myself, but now the accountant tells me my profile hits the HMRC target of opening an inquiry.

Is there anything I can do to mitigate it? Should I get insurance/ legal advise, I have the usual indemnity and employer's insurance, but not HMRC investigation insurance that used to come with the old contractor union thingie (is ipsa now?? forgot the name) which I used to have a long time ago before they made all the changes.

Bizarrely, this is the time to contact HMRC and ask for their help. This is a recent problem for you and should be pretty easy to clear up.

I'd also join IPSE, first, just in case.

[SandyD]

Bizarrely, this is the time to contact HMRC and ask for their help.

I'd also join IPSE, first, just in case.

Thanks Jacko - sorry can't call you cojak, am attached to your old screen name


Can you give further advise on how to contact HMRC and how to go about it?

I will PM you details, but I know others maybe interested in the reply, am PMing you just details about me, so if you or others want to give advise here please do.

[SandyD]

Would joining IPSE work now after I had a few letters saying there were errors in my tax submitted by the accountant (Personal and PAYE) the errors were only a few hundreds so not a huge sum at all which has been settled already with HMRC. Could they use the fact I got such letters to say I knew I maybe investigated and therefore may not support the claim?

[Jessica@WhiteFieldTax]

Most insurances work on a claims notified basis.

So if no enquiry has been notified yet, get yourself insured ASAP.

Ask your accountant if they have a scheme, as that would guarantee covering you for their work, and probably no declaration necessary about your thinking an enquiry may be imminent. If not Qdos, IPSE, FSB, etc - if there is just a knowledge of a possible problem then you shouldn't have difficulty in getting cover.

I remember a case I had about a decade ago, a little more.

Day 1 HMRC opened enquiry and send letters by second class post
Day 3 - 10am client faxed in an application for insurance, routine as it was renewal time
Day 3 - 10:30 post arrived with letters from HMRC opening enquiry
Day 3 - 11am insurers confirmed covered

That was "Old Qdos" pre the Taxwise takeover.

[SandyD]

Thanks Jessica, not sure from the above if you are recommending Qudos or not? I have my Indemnity and employee insuranc with them, so it would be easy to have it with them, but not sure if I should join IPSE as well? I prefer not to do both

[MrMarkyMark]

Bizarrely, this is the time to contact HMRC and ask for their help. This is a recent problem for you and should be pretty easy to clear up.

I'd also join IPSE, first, just in case.

Absolutely this.

I was over 2 months late with my VAT, once, after rather ambitiously sending the cheque from India .

I called them on my return, they were very understanding and helpful.

Really

Also agree, get the insurance first

[SueEllen]

Thanks Jessica, not sure from the above if you are recommending Qudos or not? I have my Indemnity and employee insuranc with them, so it would be easy to have it with them, but not sure if I should join IPSE as well? I prefer not to do both

She's simply saying buy insurance asap and given you 3 organisations - IPSE, QDOS and FSB - who sell the insurance you need plus ask your accountant if they sell cover.

[Alan @ BroomeAffinity]

You might find your accountant has a group scheme that ALL clients are covered by. That's what we have. I think given he/she made the errors in the first place you'd get invited on foc.

[SandyD]

No my accountant is an individual not a large accounting company. Am looking to move now.