More reasons to purchase Tax Enquiry Insurance

HMRC secured a record £36.9 billion of additional tax revenue in 2019/20 through enquiries and compliance visits.

HMRC uses a sophisticated database called ‘Connect’ to start more than 80% of tax enquiries.  The system collects data from 30 different sources, including UK and offshore banks, Companies House, the Land Registry, Estate Agents, social media the DVLA and other licensing authorities.

Sch36 of the Finance Act 2008 gave HMRC wider powers than ever before, allowing them to request any documentation or information that they deem necessary to check the taxpayer’s tax position.

There will undoubtedly be even more tax enquiries as HMRC look to recover the enormous £350bn government spend through the Covid-19 pandemic, as well as ensuring that the measures put in place to support the economy through this period have been utilised correctly by taxpayers.