Tax Investigation Insurance

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.



 
Latest Blogs in Tax Investigation Insurance
 
Philip Peters
5th October 2017 HMRC “Connect”: Now checking businesses that should VAT register.

We have known since 2010 that HMRC has a computer programme, called “Connect”, that is collecting data from a variety of sources about taxpayers, and then using this intelligence to check on correct tax compliance. We have known that these data sources include Banks, Social Media, DVLA, Local Authorities, Foreign Tax Jurisdictions and Land Registry.…

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Philip Peters
24th February 2017 Renewal Premiums

Tax Investigation Insurance: Premiums for 2017-18 policy year. Prices unchanged from the previous year:   Limited companies with turnover >£20m                    POA Limited companies with turnover £10m to £20m     £540 Limited companies with turnover < £10m                   £185 Partnerships and LLP’s                                                     £155 Sole traders                                                                         £100 Private clients                                                                       £40 Our tax investigation insurance business is…

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Philip Peters
22nd March 2016 Insurance Renewal

Tax Investigation Insurance: Premiums for 2016-17 policy year. Premiums wef 1 April 2016: Limited companies with turnover > £10m …… £540 Limited companies with turnover < £10m …… £185 Partnerships and LLP’s ……………………………. £155 Sole traders ……………………………………………. £100 Private clients……………………………………………..£40 Our tax investigation insurance business is administered from our Bury St Edmunds office(Contact: Jill Holt).

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Philip Peters
26th November 2015 Tax Revenues

Tax Investigations Insurance: £800 million more for HMRC, to close the ‘tax gap’. Among the many announcements affecting HMRC and the way it administers the tax system in future years, Chancellor George Osborne has pledged £800 million of funding for additional work to tackle tax evasion and non-compliance. The aim is to raise an additional…

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Philip Peters
24th July 2015 Tax Whistle-blowers

Tax Dodgers Beware: HMRC makes record payments to informants. Our Fee Protection insurers report that HMRC made payments of £605,000 to informants in the year to March, up 50% on the previous year. Around 100,000 calls were made to HMRC’s confidential telephone hotline over the last year. Finding sufficient supporting information to justify following up…

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Philip Peters
15th May 2015 HMRC Intelligence

HMRC “Connect” System: Big brother is watching you ! HMRC is gathering an increasing amount of data from a variety of sources about taxpayers using its “Connect” system. Since 2010 HMRC has collected information from organisations such as the banks, the DVLA, local authorities and foreign tax jurisdictions, and uses it to build up a…

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