Fee Protection Insurance

• The Inland Revenue and Customs and Excise are putting increased resources into enquiries and investigations.
• All taxpayers are vulnerable.
• Insurance cover provides a means of softening the blow.

Increased Resources

Under self assessment taxpayers are responsible for making their own Returns of Income and Capital Gains. Tax liabilities are assessed purely on the basis of Returns submitted.

As a deterrent to taxpayers submitting incomplete or incorrect Returns, the Inland Revenue is putting more resources into its enquiries and investigations branches. Inspectors have received specialist training and experienced accountants have been employed to strengthen the enquiry function. At the same time, both the Inland Revenue and Customs and Excise are increasing the number of routine PAYE and VAT inspections.

All Taxpayers are Vulnerable

The Inland Revenue no longer needs to justify the selection of any particular taxpayer for enquiry. Some Tax Returns are selected by computer purely at random, even before the Return has been submitted!

Dealing with an Inland Revenue enquiry, or with disputes arising from a PAYE or VAT inspection, can be a stressful, time consuming and expensive experience, which can be very disruptive, particularly for small family businesses.

Softening the Blow

In response, we have introduced a fee protection insurance scheme in conjunction with IRPC Ltd, the largest insurer in the field.

The main features of the scheme are:-

1. £50,000 of cover for professional fees resulting from a full enquiry or a dispute arising from a PAYE or VAT inspection.
2. Cover for aspect enquiries, subject to a small excess.
3. Cover for company directors and partners included in the premium paid by the company or partnership.
4. Access to a free telephone support line, providing expert advice on health and safety, employment issues and commercial legal matters.
5. Premiums tailored for individuals, sole traders, partnerships and companies.
6. If you are selected for enquiry, we make the claim on your behalf and handle the enquiry or dispute in the usual way. Our fees are settled direct by IRPC Ltd.
7. You are kept informed at all stages.

More Information

For more details of the policy, including certain important exclusions, and the premium applicable to your circumstances, please contact us, as detailed below: