In the UK we live in a self assessment tax environment, where taxpayers are responsible for calculating their own tax liabilities. HMRC then police this system by having extensive powers to investigate the accuracy of these “returns” by opening targetted or random tax enquiries (corporation tax, income tax and capital gains tax), record checks and by conducting control visits (VAT, PAYE/NIC, employment status and benefits in kind).
In response to this increased risk of our clients being subjected to such an investigation, we offer clients the opportunity to take out tax investigation insurance, before we submit their tax return to HMRC. You can then rest assured that if a tax enquiry is opened, any additional professional fees (excluding all of the VAT, for VAT registered clients) that we charge you for dealing with this enquiry will be paid direct to us by this insurance policy.
We recommend that all of our higher risk clients and those who wish to insure against uncertainty join this tax investigation insurance scheme.
Tax Investigation Insurance Main Terms and Conditions
Our tax investigation insurance scheme is underwritten by PFP, one of the largest insurer in this field. The main features of the scheme are:
- There is no excess on this insurance cover.
- Generally, cover is limited to £100,000 (£1,000 for interventions)
- Cover for company directors and partners is automatically included in the cover for the company or partnership.
- The cover includes aspect enquiries, full enquiries, HMRC interventions, employer compliance reviews, VAT assurance visits, IR35 enquiries and status enquiries.
- Access to a free telephone support line, providing expert advice on health and safety, employment issues and commercial legal matters.
- Cover can extend to new clients, for whom we have not prepared their last tax return.
- If you need to make a claim on this policy, we shall administer all aspects of this claim procedure.
Tax investigation insurance cover runs from 1 April each year.