You need evidence, and not just wishful thinking. 
 
Whilst this case relates back to 2012, the judgement happened Aug 19 and is now published... it emphasises that you need to keep your evidence and not just rely on word of mouth evidence. 
We all know the effect that Covid has had on our businesses, jobs, economy… and the public finances, and yes we will have a period immediately in front of us that the government described as euphoria, when the apparent, £180 billion of savings that have been accumulated will be spent… 
 
But… 
 
The national debt will need to be paid down, and behind this peaceful, euphoric period, there is a storm coming. The storm will include Tax Enquiries, and that’s the storm warning that we’re giving you here. 
Surely we all know by now, that there were errors (let’s be generous and call them that) with furlough claims, and HMRC/government have already announced their investigations into this area – at the Budget, the Chancellor announced a further recruitment of 1000 investigators. 
 
As well as the furlough claim “errors”, the number of businesses claiming Bounce Back Loans when they shouldn’t have in accordance with the rules published by The British Business bank has been staggering – the banks will not be accepting their responsibility for the poor lending decisions, instead the focus is on “fraudulent applications”, and their fraud teams, supported where necessary by the police, will be investigating these. 
 
Talking with the head of HMRC investigation team, and all the insurers, there is now a fair warning that HMRC will be stepping up their general tax Enquiries. 
 
So what can you do about it? 
 
I’m bound to say it, but if HMRC are about to unleash the dogs on you, this is the time you need a good accountant, not a cheap one. Make sure that your advisors can cope with what potentially lies ahead. 
Review with your accountant any claims you’ve made for government support so that you’re prepared to respond promptly and succinctly to any enquiry. 
Make sure that you have your “fee protection” in place so the costs of defending any Enquiry are met by the insurers, and not extracting cash from your pocket. 
 
If we can be of service, email info@expat-tax-advice.co.uk
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