Tax Investigation Insurance
Since April 2009, HMRC have been able to visit any business premises to inspect records relating to taxes including corporate, income, PAYE, NI, Capital Gains and VAT.
At such a time when a coalition government is working closely with HMRC to reduce the nation’s debt, no stone is being left unturned and tax inspections are becoming increasingly more commonplace. In some instances, even minor discrepancies (the odd pound here or there) have warranted full scale audits with the ultimate aim of collecting extra tax.
If you are selected for a tax enquiry, answering all of HMRC’s questions will take time and the enquiry could drag on for many months. Your accountant could incur thousands of pounds in fees defending you, whatever the end result.
This is where we can help. From as little as £93.00 our Tax Investigation Insurance product will cover your accountant’s fees if you are the subject of an HMRC tax investigation.
Main policy benefits
- Your accountant will defend you should you receive any correspondence or visit from HMRC
- The potential high cost of professional fees for your defence will be claimed under the insurance policy
- It will not be necessary to accept unreasonable tax charges by HMRC due to concerns about professional fees
What does the policy cover?
You will be fully protected by the insurance policy which provides cover up to £75,000 for professional costs in the following circumstances:
- Dealing with any correspondence from HMRC
- Attendance at any meeting with HMRC up to and including an appeal to the First-tier Tribunal or Upper Tribunal.
Case Study: Property Developer subject to a VAT Compliance Review
Following a VAT compliance review it was determined that given that the client was making both exempt and ‘VATable’ supplies, they should not have recovered 100% of input tax in previous years. The client’s accountant successfully disputed the assertion on the basis that the client was below the partial exemption de minimus limit, avoiding a potential liability in excess of £20,000. Accountancy fees of £3,500 were incurred.
To make sure you don't have to pay out fees, contact us on 02392 248790 for a no obligation quotation.
