Given the Government’s aim to increase revenue to help the country’s finances, which has included HMRC targeting businesses for an ever increasing tax yield, now is the time for accountants and clients to work more closely together.
One simple example of a situation in which a close relationship between accountant and client can be of benefit is that of a business scheduled to undergo a VAT inspection. At such an inspection, the question arises as to whether the business is taking ‘reasonable care’ in dealing with their VAT affairs. ‘Reasonable care’ is not defined but if there are errors identified during a VAT visit, the conversation will certainly turn to the issue of HMRC levying penalties, and this can result in a VAT visit being much more painful than it used to be.
Something that should therefore be considered is Fee Protection Insurance.
Once an enquiry has been notified, Fee Protection Insurance will cover a pre-VAT inspection review, a process designed to protect the client and in the long run, mitigate additional insurance costs.
Perrys offer Fee Protection Insurance to all our clients. We also have a team that carries out the pre-VAT inspection review that looks at how clients do things both from their business activity perspective and the wider VAT accounting perspective. If issues are identified, we help to deal with them and manage the VAT visit so that any penalties are mitigated. Conversely, if there are any opportunities we look to identify and recommend action on these as well. During such a review we may identify VAT error issues, but by carefully managing the inspection and through discussion with HMRC we can normally minimise any penalties or avoid them completely.
If the review is covered by Fee Protection Insurance then it costs the business next to nothing, and yet the business receives expert assistance before the VAT man (or lady) visits!
If you would like to find out more about Fee Protection Insurance or the assistance that Perrys can provide in advance of a VAT inspection (or other tax inspection), please get in touch with your local Perrys branch.« Back