We live in a self-assessment tax environment where taxpayers are responsible for calculating their own tax liabilities. HMRC then police the system by having extensive powers to investigate the accuracy of tax returns, by undertaking targeted or random tax enquiries (corporation tax, income tax and capital gains tax), record checks or by conducting control visits (VAT, PAYE/NIC, CIS, IR35 compliance, employment status and benefits in kind). In response to the increased risk of our clients being subjected to such an enquiry we offer the opportunity to subscribe to our tax investigation insurance, before we submit their tax returns to HMRC.
Clients can then rest assured that if a tax enquiry is opened, 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
Our tax investigation 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.
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.