Tax Investigation Service
The following pre-conditions apply to be covered by TiPS:
- Advice must be sought from Avar on all technical and tax matters before the event.
- Advice may be covered or not, in the agreed annual fee.
- Alternatively, Avar will indicate whether the event is covered by the standing fee arrangements or not.
- No communication whatsoever must take place between HM Revenue & Customs, yourself and any third parties, as advice given by Avar can only be covered.
To subscribe to our service, payment for the amount due should be sent as stated on the accompanying letter/response slip. If you need any more information, we can provide this by email or post.
Like any other protection to meet an unexpected cost, everyone hopes that they do not need it but when a costly enquiry starts, clients are glad that they have paid the small annual charge.
The cover offered by these types of protection is often not as wide ranging as the service we offer. Such policies are not likely to pay our fees to look after you and may instead bring in an outside consultant who does not know you.
Most tax enquiries are generated by computer ‘risk profiling’ and many are selected completely at random. As a result, anyone can be picked for investigation, even if you have done nothing wrong.
TiPS cover need not be taken out, at all, but specific enquiry can be covered as and when required.
This will be based on the charge out rate, or a fixed fee quotation can be provided. This will have to be settled before the investigation is acted upon.
TiPS is valid where a form 64-8 is in place and the assignment is prepared and submitted, on behalf of the client, by Avar, without third party intervention or contribution.
Once you join the service, you will be protected against our fees relating to enquiries raised into previous years, even if we did not prepare the return. Exclusions to this would include any fees incurred by the previous accountant and any fees relating to the reconstruction of books and records that have been poorly maintained.
Protection is only available from the date the subscription payment is received. If an enquiry letter is received from HMRC prior to receipt of payment, our fees will not be settled under the service.
Returns which have been submitted more than 90 days late will be excluded from the service.
Any Tax Investigation work (whether covered by TiPS or not) will be charged at our current hourly charge out rate from 1 April 2022 @ £350/hour, by work performed by any members of the team.
If the company has employees and/or is VAT registered, there are still advantages of joining the service before the first corporation tax return is filed, for example, in the event of a PAYE or VAT enquiry.
Providing the business has subscribed, and we are engaged to prepare the personal tax return for the director/partner, they will automatically be included within the service at no extra cost.
It is a Service set up by us and is backed by an insurance policy we have taken out in our own name with Professional Fee Protection (PFP) and protects our clients who suffer a tax enquiry. For a small annual fee, you can join our Service and obtain the benefits described on the service Summary. When you subscribe to our service we are able to make a claim against our insurance policy held with PFP in respect of our fees incurred.
If you have cover for Sole Trader, you are automatically covered for any Personal Tax investigation. Personal Tax cover is only meant for those individuals who are not self-employed.
PFP are specialist providers of Tax Enquiry Insurance. They pioneered fee protection in the UK over 30 years ago. They have protected over 600,000 different businesses and individuals. They are committed to working in conjunction with us, thus ensuring your interests are fully protected.
Where covered by TiPS, with the exception of the excess, Avar will look to the re-insurers to cover their fees at the agreed prevailing charge out rates.
A business subscription will automatically provide personal tax protection for the partners, directors, company secretary and their spouses providing we also prepare their tax returns. A sole trade supplement may be required where you have additional self-employment income or gross rental income in excess of £50,000 per year.