HMRC Now Spends 20% Longer on Tax Enquiries

06 August 2015

There has been a 20% increase in the average amount of time taken for HMRC to handle tax inquiries into ordinary taxpayers, according to analysis by insurance specialist PFP.

The firm says a data request shows that HMRC’s local compliance teams took an average of three months in 2013/14 to sort out inquiries, compared to 2.5 months in 2012/13.  Kevin Igoe, managing director of PFP, said that this increased the level of disruption and uncertainty for individuals and small business, noting that: ‘Any increase in the length of time taken for HMRC to complete a tax enquiry will be a major concern for those being investigated.’

PFP says that the rise in the average length of a tax enquiry also means that the cost of advisory fees for accountants or lawyers, to help individuals and small businesses deal with the enquiry, is likely to have increased.  ‘Innocent individuals are often drawn into tax enquiries, which are both distressing and costly, so a 20% jump in the average time taken means a rise in levels of stress and cost to the potentially innocent individual,’ Igoe pointed out.

Daly Park offers its clients tax investigation insurance to cover the cost of any accountancy fees generated in the course of a tax investigation.  Rates are very reasonable and the cover provides our clients with peace of mind knowing that we can represent them during such investigations without worrying about the professional fees involved.  Should you require any further details on tax investigations contact Roisin at our Newry office at (028)3026 7715 or by e-mail at roisin@dalypark.com .