Old Mill are renewing their Fee Protection Service
13 June 2018
We are delighted to announce that Old Mill will be renewing their existing contract with PfP (Professional fee Protection), our current service providers.
Why is this a big deal? Well, our Fee Protection Service offers all clients the opportunity to effectively cover the cost of our professional fees in defending them in the event of an HMRC enquiry into their personal, business or corporate tax affairs (including VAT, PAYE, and IR35 issues).
These costs are never light and it is not uncommon for even the most simple of interventions to generate associated time costs of around £3k. In the event that HMRC wish to really test the integrity of a tax position, costs can and often do exceed £10k.
From our discussions with PfP (and a number of other possible service providers), it is apparent that there is a lot of increased and related activity within HMRC. Indeed and in the lead up to 2020, PfP report that the Treasury has already pledged an extra £1.8 billion to HMRC to fund even more investigations. In turn, HMRC have pledged to increase their tax take as a consequence of all this activity, by an additional £1 billion per annum by 2020.
Not only is the number of enquiries on the increase, but the way in which they are being conducted has become far more challenging. There is increased emphasis on “evidence” and somewhat uniquely within our legal system, the burden of proof falls on the taxpayer to demonstrate that HMRC’s sometimes aggressive and unreasonable views are wrong. HMRC are fully aware of the professional costs associated with mounting a robust defence and, on occasion, use this as a tool to encourage capitulation.
Again, we are delighted to have renewed our existing contract with PfP and to be in a position to continue to extend our fee protection service to all clients.
For more information, please do not hesitate to contact Andrew Wholey.