Taxpayers are responsible for calculating their own tax liabilities. HMRC then police the system by investigating the accuracy of these tax returns by undertaking targeted or random tax enquiries. In response to this we offer clients tax investigation insurance.
Clients can then rest assured that if a tax enquiry is opened into a business or personal tax return, any additional professional fees (excluding the VAT, for VAT registered clients) that we charge for dealing with the 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 actively mitigate this uncertainty should take out this cover.
Main Tax Investigation Insurance Terms and Conditions
- This insurance is underwritten by PfP. PfP are one of the premier providers of insurance in this field. The main features of the cover are:
- There is no excess if a claim is made on the insurance cover.
- Generally, cover is limited to £100,000 (£2,000 for interventions)
- Cover for directors is automatically included in the cover for the company provided we act for both.
- The cover includes aspect and full enquiries, HMRC interventions, employer compliance reviews, VAT assurance visits, IR35 and status enquiries.
- 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 administer all aspects of the claim procedure.
The tax investigation insurance cover runs from 1 April each year.
Why take out our tax investigation insurance?
- This will give you peace of mind that there will not be any unexpected future fees from us in the future if HMRC target you with a tax enquiry.
- The HMRC ‘Connect’ computer programme collates data from the following sources and uses AI to compare this information to tax return disclosures, to identify possible anomalies:
- Credit card processing companies and online payment providers,
- Social media,
- Amazon, eBay & Gumtree
- Google street view
- Council tax records
- Electoral roll
- Insurance companies,
- Local authorities,
- Property websites,
- Foreign tax jurisdictions
- Land Registry
- Companies House
Main policy details:
Get in touch with your local office and speak to one of our specialist advisers about our tax investigation insurance.
Managing Director of a Translations Company
I would strongly recommend Whitings. The partner responsible for my affairs has been exceptionally helpful in matters which have covered a broad range of business areas. His open and friendly manner is a breath of fresh air.