We offer all of our clients a Fee Protection Service. Fee Protection runs on an annual basis from 1 April to 31 March each year and for a small annual fee, set out in the table in the link below, you would be covered against the costs of our fees should you be subject to an enquiry by HM Revenue & Customs (HMRC).
Each year HMRC undertake a large number of tax enquiries into individuals and businesses to check they have paid the right amount of tax. Since 2010 HMRC have strengthened their approach to enquiry work by using wider powers and sophisticated software and consequently secured £30.8 billion of additional tax revenue generated through tackling avoidance, evasion and other non-compliance in 2021/22.
Moving forwards we expect to see an even greater increase in the number of 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. HMRC enquiries or compliance checks into measures such as the Job Retention Scheme (Furlough) and Self Employment Schemes are covered by the Policy, (subject to the normal terms and conditions).
Tax enquiries can last for months, even years and defending you against HMRC’s detailed questions requires specific expertise and can be time consuming and costly. Indeed, the cost of dealing with an enquiry can amount to thousands of pounds, even if no extra tax is payable.
Summary of fees
Our normal annual fees do not cover the additional professional costs of handling tax enquiries and compliance checks. To give you peace of mind in the event of an enquiry, you’ll be protected against such unexpected costs by subscribing to our Tax Fee Protection Insurance service. View a sample Summary of Service.
|Entity||Annual Fee (inc VAT)|
|Private Clients (Simple)||£30.00|
|Private Clients (Complex)||£70.00|
|Sole Traders (NON VAT Registered)||£120.00|
|Sole Traders (VAT Registered)||£180.00|
|Partnerships / Ltd Co up to £150,000||£180.00|
|Partnerships / Ltd Co between £150,001 to £500,000||£225.00|
|Partnerships / Ltd Co between £500,001 to £2m||£315.00|
|Partnerships / Ltd Co between £2,000,001 to £5m||£420.00|
|Partnerships / Ltd Co between £5,000,001 to £10m||£630.00|
|Trusts with rental < £50k||£30.00|
|Trusts with rental > £50k||£120.00|
|Trust with trading income||£120.00|
What you need to do
The service runs on an annual basis every year from 1 April to 31 March, however you can join the scheme at any point. Cover will be in place from the date payment is made to us.
To join the scheme please email FeeProtection@nicholsonsca.co.uk, complete the form below confirming the name of the entity/(entities) you want to protect and the total amount due. Please send payment by BACS to sort code 60-13-15 account number 00871265, quoting Fee Protection as your reference.
If you have any queries regarding the scheme, please do not hesitate to contact your usual contact at Nicholsons or Leanne Chancellor.
Note that directors, company secretaries, members, partners and their spouses are covered within the business charge unless they have a separate business and/or rental income above £50K (in which case they will need to pay an additional Sole Trader service charge).