Accessibility links

Tax Investigation Insurance Service

Time-consuming and expensive HMRC tax investigations are on the increase. Make sure you are protected when HMRC strikes.

With an estimated tax gap of approximately £35.5 billion between what HMRC should collect and what it does collect, HMRC undertakes investigations into all types of taxes and believes that small businesses and individuals account for over half of the gap. Any individual or business can be selected at random for an investigation, even if they are fully compliant.

By using tax investigation insurance (also known as HMRC Investigation Cover or Fee Protection), you’ll be protected against professional costs arising from a range of investigations into different areas of your personal and business tax affairs.

What happens if HMRC wants to investigate me or my business?

If HMRC opens an investigation into your tax affairs, you are obliged to provide information and liaise with HMRC throughout until HMRC are satisfied that you have paid the correct amount of tax. This work is best dealt with by your accountant or tax adviser, and the fees associated with representing you in an enquiry are due from you or your business, and not met by HMRC. Tax investigations can be onerous and take months or years to bring to a close.

Why is tax investigation insurance important?

Reduce Financial Risk

Our tax investigation insurance will cover you and your business up to the sum of £100,000 in professional fees.

Professional Representation

Our team of chartered tax advisers and chartered accountants, experienced in dealing with HMRC enquiries will represent you throughout an enquiry. We’ll meet and correspond with HMRC on your behalf and ensure everything is completed in a timely manner.

Summary of benefits of tax investigation insurance

Here’s some examples of what you get from our tax investigation service:

Fully funded professional representation and advice (up to £100,000 in fees) throughout an HMRC investigation
All meetings and correspondence with the tax inspector of taxes handled by chartered tax advisers and chartered accountants experienced in dealing with HMRC investigations
Saves you money – we’ll make certain that you pay the correct amount of tax and negotiate with HMRC to minimise any proposed penalty charges
Peace of mind – knowing that your appointed accountants and tax advisers are handling your case

What taxes are covered by tax investigation insurance?

Corporation tax self-assessment
Income tax self-assessment
PAYE P11D

National insurance
Construction industry scheme
IR35
VAT

National minimum wage
VAT visits
Capital gains tax

If you would like more information on how our tax investigation insurance can help you and your business, contact a member of the team by calling us on 0115 955 5500 or emailing enquiries@pagekirk.co.uk.

FAQs

Will I be investigated by HMRC?

Any taxpayer, be it an individual completing a self-assessment tax return, a sole trader, partnership, or company, can be selected for an investigation. HMRC use sophisticated analytics software to identify which taxpayers to investigate. Some are chosen for investigation at random.

I’ve never needed this service before, so why now?

Tax Investigations are on the increase. HMRC has spent over £80m on a new super computer specifically to identify businesses and individuals who are identified as having potential tax discrepancies.

I have nothing to hide. Why would I be investigated by HMRC?

HMRC are tasked with collecting more tax:

£35.5 billion - the estimated gap between what HMRC should collect and what it does collect
£26 billion - the additional amount of annual tax income that HMRC want to collect
£80 million - spent by HMRC to develop a super computer that monitors your digital footprint for potential underpaid taxes

Could I not respond to the investigation myself?

HMRC tax investigations can be stressful and time consuming. They will often require technical knowledge of a chartered tax adviser or chartered accountant to resolve any items in dispute. You will need an experienced representative looking after your best interests during an enquiry; to help ensure you do not pay more tax than is necessary; and to bring the enquiry to a swift close.

If Page Kirk have done my returns, why would there be an investigation?

Some people and businesses are selected for an investigation completely at random and often result in no additional tax or penalties being due. In some cases, certain parts of tax legislation are open to interpretation – some tax rules are complex. If a tax inspector wants to interpret the law in a different way, this can be hugely beneficial to them and not for the taxpayer.

If you already have an accountant, it’s quick and easy to switch to Page Kirk.

Page Kirk is a leading accountancy practice in Nottingham, but we service clients across the country, so wherever you are based, we can help. We will assign you an accountant to assist you in growing your business and improving its efficiency. Contact us to find out how we can help you today.

Find Out More

Get in touch

From ensuring that you comply with your statutory requirements, to navigating the scaling-up of your business, through to effective profit extraction and dealing with your tax affairs, Page Kirk Nottingham accountants are here for you every step of the way.