Tax Investigation Insurance

Tax Investigation Insurance.

You are at risk.

Every individual taxpayer and business is at risk of being chosen at any time for a tax investigation purely on a random basis. This applies to private individuals and to businesses.

No one is immune from an HM Revenue & Customs enquiry and it could cost you thousands. The coalition Government announced in October 2010 that it would allocate £900 million to target tax evasion, which means you are more likely than ever before to be investigated.


Why you could be chosen?


An investigation may be triggered when HM Revenue & Customs (HMRC) pick up something they see as unusual on a tax return. In fact you don’t need to have done anything wrong to be selected for an investigation, if any of the the following areas are higher than average for you or your business, you may well be at risk:

• motor expenses.

• building repairs.

• legal costs.

• levels of stock or work in-progress.

Local newspapers, the internet, adverts, bank returns, national statistics and enquiries into other businesses, even an overheard conversation, can all be the starting point for an investigation.

Or they may act in response to a tip off.

But they don’t need to have a reason at all, you could simply be chosen at random and as well as past returns, they may even look at your current year’s affairs.


Why do you need fee protection (Tax Investigation Insurance)?


Being investigated by HMRC can be a distressing and expensive experience that can be very disruptive and intrusive, not to mention prolonged. Investigations frequently go on for a year or more.

If you need us to represent you and to argue your case, you will be liable for the additional costs. Tax Investigation Insurance provides our clients with cover for costs we incur in representing them in an investigation.


• The tax authorities don’t need a reason for opening an investigation.

• You could easily be selected at random.

• Any person or company who should complete a tax return could be investigated.

• HMRC are devoting almost one quarter of their entire budget of £4 billion to enforcement and compliance.


What is Tax Investigation Insurance?


A scheme for our clients that pays the professional fees required to provide you with the right level of representation should you be subject to an investigation or dispute with the tax authorities. Without this cover, you would need to pay for any of our costs incurred.