Tax fee protection insurance

Anyone who submits a tax return is at risk from an HMRC investigation.

Every year, HMRC investigates hundreds of thousands of individuals and businesses in the UK. It has the powers to do this at random, at any time, and everyone is at risk. Even if you have done nothing wrong, you are still at risk of an investigation, which can take many months and cost thousands of pounds. Tax Free Protection Insurance will cover the costs of accountancy advice and support throughout such a stressful and expensive experience.

With our tax fee protection insurance service, you can enjoy the peace of mind that comes from knowing you’re protected. Not only does it cover the cost of an investigation, it enables us to provide expert advice and guidance to you in the event of an enquiry.

Our tax investigation service is supported by a policy from the UK’s leading tax investigation insurance providers – Professional Fee Protection, which we have taken out in our own name. This enables us to manage your case for as long as your HMRC tax investigation takes, up to the policy limit.

The tax fee protection insurance service in summary

Full enquiry
Comprehensive HMRC review of your entire self-assessment tax return, including all books and records
Aspect enquiry
HMRC investigates specific aspects of your self-assessment tax return, possibly requiring clarification or further details
VAT and employer compliance visits
HMRC conducts routine PAYE/VAT checks; professional representation is covered up to £1,000 if needed
Pre-dispute cover
Involves professional representation following a routine HMRC inspection; indemnity limit is £1,000
VAT disputes
HMRC challenges the accuracy or completeness of your VAT returns, typically involving disagreements over VAT calculations
PAYE and NIC disputes
HMRC challenges the accuracy of returns submitted under PAYE regulations, usually involving disagreements over PAYE or NIC amounts

IR35 disputes
HMRC claims that a client should be subject to IR35 legislation, typically following a PAYE compliance visit
Business inspection notices
HMRC requests entry to inspect business premises, assets, and documents, often with short or no notice
Code of Practice 8 investigations
Special HMRC investigations that issue a Code of Practice 8 Booklet; indemnity limit is £5,000
Application for judicial review
Legal challenge to an official decision when no other recourse is available; indemnity limit is £5,000
Partners/Directors/Secretary/Spouse cover
Coverage for personal returns of partners, directors, and their spouses, and company secretaries, with certain limitations
Interventions cover
HMRC issues a routine letter for clarification on a Self-Assessment tax return; indemnity limit is £1,000 per claim

Is anything not protected?

There are some things that our Tax Fee Protection Insurance cannot cover – full details are available on request but include:

The cost of making good any deficiencies in books, records, accounts or returns
Claims that originate from any matter that existed before the first period of insurance, except where full disclosure has been made and the increase in risk has been accepted in writing
Minimum wage, student loans, CIS and tax credit enquiries
Returns that have been submitted more than 90 days late

Client legal helpline 24/365

As a subscriber to the tax fee protection insurance service, you also have access to the helpline which is available to deal with common legal issues such as:

Health & Safety
Employment & Personnel
Commercial Legal Matter

If you wish to join the scheme the prices (net of VAT but including IPT) are for the one year period commencing 1 April 2016.

Landlords – £39.00
Sole traders – £79.00
Partnerships – £99.00
Limited company (including director cover) – £99.00

If you wish to join the scheme, contact us today