Tax Enquiry Insurance
What is an HM Revenue & Customs (HMRC) Tax Enquiry?
In the UK the taxpayer is responsible for completing returns accurately and determining their own tax liability. HMRC open enquiries to check that taxpayers are paying the right amount of tax. They will also (where relevant) visit businesses in order to ensure that they are operating VAT and PAYE correctly.
Could I be subject to an HMRC Tax Enquiry?
If you or your business submits a tax return to HM Revenue & Customs (HMRC) then there is a risk that it could be subject to an HMRC enquiry or inspection. If you or your business is VAT registered or operates PAYE there is also every chance that HMRC will undertake an inspection to ensure that you are operating these correctly. Thousands of individuals and businesses are selected for such checks every year.
What does an HMRC enquiry involve?
HMRC will write to you and / or come and visit your business premises and ask you questions about how you have determined the amount of tax due. It is important that you have professional representation to ensure that HMRCs questions are answered robustly and accurately. Enquiries can last for months, even years and professional fees incurred dealing with the enquiry can amount to thousands of pounds, even where no additional tax is due at the end of the enquiry.
How can I protect my business and myself?
Our Tax Enquiry Insurance will cover costs incurred by your accountant defending you in the event of an enquiry or if you prefer it will cover costs incurred by our own representatives who have many years’ experience dealing with tax enquiries. This will ensure that you have the best possible defence and get the right outcome.
How do I purchase this insurance?
To purchase this insurance select the type of taxpayer you want to protect under 'Your Quote' to the right. You can then create an account and purchase the protection.
Note that when you purchase for a business the directors, formal company secretaries, members, partners and their spouses are covered within the business premium (as long as the accountancy practice is the appointed tax agent) unless they have a separate business and/or rental income above £50K (in which case they will need to additionally and seperately purchase cover for themselves at the Sole Trader rate).
Full details of the policy coverage are detailed within the policy documents which can be found below under Important Documents.