Tax Investigation Insurance

Tax Investigation Insurance banner

The current state of the UK finances means spending cuts in the public sector and an increase in the amount of the taxes we pay.  Also it means more investigations and enquiries into our tax affairs by HMRC.  Tax Investigation Insurance will give you peace of mind in the event of an Enquiry/Investigation by HMRC.

Our group policy is with Abbey Tax, the market leader in the provision of tax investigations insurance to the accountancy profession.  Abbey Tax is a trading division of Abbey Tax and Consultancy Services Limited, which is authorised and regulated by the Financial Services Authority so you can be assured of the highest standards of service.

As a business client, by subscribing to this service you will also receive free telephone access to a 24 hour Business Legal Advice line for advice on matters including Employment & Personnel, Health & Safety and other commercial issues.

The cost of the annual cover is as follows:-

Personal

£47

Sole Trader & Partnership

£135

Limited Company

£160

Notes:

  1. The annual charge includes insurance premium tax of 9.5%.
  2. Maximum cover for the full enquiry is £75k with no excess. Maximum cover for the aspect enquiry is £2,500 (£4,000 for Company), with no excess.
  3. The annual charge includes an administration charge for Raymond Benn & Co, which is approximately 50% of the cost from the insurer.

The main exclusions are as follows:-

  • Existing investigations and disputes at the time the insurance is taken out.
  • Fees incurred prior to the written acceptance of a claim.
  • Claims arising where the Annual Returns/accounts are submitted ‘late’, i.e. outside the time parameters set out in Taxes Act.
  • Attendance at routine VAT and Employer Compliance visits.
  • Special Compliance Office, Special Investigations Section and HM Customs & Excise Investigation Division cases.

The Insurance reimburses the Professional Expenses incurred in dealing with the following disputes and investigations:-

  • Self assessment Full and Aspect Enquiries (Income Tax and Corporation Tax)
  • PAYE, P11D (return of benefits) and NIC Disputes.
  • HM Customs & Excise VAT disputes.
  • IR35 Disputes.
  • Requests by HMRC to inspect assets, documents, records or business premises in accordance with section 36 of the Finance Act 2008.

Guide to the new penalties regime

Click here to email Martin Yardley for further information and/or to arrange cover.

This material provides only an overview of the regulations in force and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.