SoS (620) Tax Investigations

SCHEDULE OF SERVICES (620) HMRC CIVIL TAX INVESTIGATIONS, ENQUIRIES AND VOLUNTARY DISCLOSURES

This schedule should be read alongside your letter of engagement (LoE) and the (300) Standard Terms & Conditions.

This document sets out the basis on which we will act for you where HMRC opens an investigation or enquiry into your tax affairs, or where you ask us to act for you in making a voluntary disclosure to HMRC. This is additional work, separate from any ongoing compliance work we carry out for you, and will be subject to an additional fee agreed with you before we begin.

Our Services

We will provide taxation advice to you in connection with the investigation, enquiry, or voluntary disclosure (referred to below as “the matter”). We will review all relevant correspondence, advise you on the nature and scope of the matter, and explain your rights and obligations.

Where required, we will prepare a report on your behalf giving full disclosure of your UK tax affairs and, once you have agreed its contents, submit it to HMRC on your behalf. Where you are making a voluntary disclosure, we may also use HMRC’s online Digital Disclosure Service to register you for an appropriate disclosure facility and to submit information to HMRC, once agreed by you.

We will negotiate with HMRC on any issues relating to taxation, interest, and penalties, with the aim of reaching a settlement of the matters under investigation or disclosure. Where the outcome may affect entitlement to benefits or tax credits (such as Universal Credit), we will not address those issues unless we have expressly agreed to do so.

As part of the matter, either we (on your behalf) or HMRC may propose alternative dispute resolution (ADR) to help resolve matters. If you instruct us to proceed with ADR, we will negotiate on your behalf as part of that process. If ADR does not resolve the matter and it continues, the terms of this schedule continue to apply.

Where you instruct us to do so on a case-by-case basis, we will also:

make appeals to HMRC against assessments and/or determinations of tax or penalties issued during the course of the matter, including any requests for collection to be postponed pending resolution — we cannot guarantee that HMRC will accept any appeal or postponement application
request that HMRC carries out an internal review of its decision, and make representations to the reviewing officer on your behalf
make representations to HMRC on your behalf if HMRC indicates that it intends to publish your details (for example, as a deliberate defaulter)
advise on double tax relief where applicable.

Where you ask us to advise on ancillary matters connected with the investigation or disclosure, we will confirm your instructions in writing. Where appropriate, we will issue a separate letter of engagement; otherwise we will carry out this additional work under the terms of this schedule and an additional fee may apply.

Where specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists and/or tax counsel. We will only do so when you ask us to.

Cooperation and Full Disclosure

We can only act for you on the basis that you will cooperate with us fully and frankly. If at any time we consider that you are not cooperating with our enquiries, are unwilling to make full disclosure to HMRC, or refuse to do so, we will immediately cease to act and will notify HMRC that we are no longer acting (without disclosing the reasons). In that event, any fees already invoiced will remain due and you will also be liable for any unbilled work in progress.

Your Responsibilities

To enable us to carry out our work, you agree:

that all information provided to HMRC in the course of the matter will be on the basis of full disclosure of all sources of worldwide income, charges, allowances, and capital transactions
to provide all information necessary for dealing with the matter fully and promptly — we will rely on the information and documents you give us being true, correct, and complete, and will not audit them
to authorise us to communicate with such third parties as we consider necessary to deal with the matter
to provide information promptly so that we can act in your interests and, where there are tax liabilities or penalties, help you qualify for such reduction as may be appropriate for the cause and level of any error
to forward to us promptly all HMRC correspondence (including emails), statements of account, notices of assessment, and any other communications received from HMRC that may be relevant to the matter. HMRC is not obliged to send us copies of all communications issued to you, so it is essential that you pass these to us in time for us to act within any statutory time limits
to keep us informed of any significant changes in your circumstances that are likely to affect the outcome of the matter — if you are unsure whether a change is significant, please let us know so we can assess it
to check whether you hold tax investigation fee protection insurance — for example, through a business membership organisation or a standalone policy — and to notify both us and your insurer as soon as possible after an investigation is opened or a voluntary disclosure is initiated. Late notification may affect your cover.

As part of our normal procedures, we may ask you to provide written confirmation of any oral information and explanations given to us during the course of our work.

Limitation of Liability

Our services are subject to the limitations on our liability set out in your letter of engagement (LoE) and in the (300) Standard Terms & Conditions. These are important provisions and you should read them carefully.