TT336: Tax Investigation Insurance
What Is Tax Investigation Insurance?
Tax Investigation Insurance covers you against the cost of any professional fees that you incur as a result of being investigated by HMRC.
Tax Investigations are time consuming, complex and stressful. You will require specialist advice from us during an enquiry. The more complex your case, the greater the amount of time and resource we will need to dedicate to you.
Unfortunately professional fees can run into thousands of pounds. As a Practice we want to protect you from this burden, that’s why we recommend that our clients take out our Tax Investigation Insurance policy. It will provide you with comprehensive cover against professional fees resulting from a tax enquiry. It’s quick and easy to get covered and costs a fraction of the average investigation.
What Happens During An Investigation?
HMRC can investigate any taxpayer, both individuals and businesses are at risk.
Tax Investigations can last for many months, even years. During this time you will find yourself likely to incur professional fees as well as having to deal with costly business disruption and probing questions from HMRC.
It’s vital during an investigation, however small it may be, that you seek professional representation from the outset.
Why Do I Need To Get Insured?
Tax Investigations are on the increase. HMRC has spent over £80m on a new super computer specifically to target businesses and individuals who are identified as having potential tax discrepancies.
The sophisticated system trawls a wide variety of sources generating a digital footprint and building a profile of a taxpayer’s total income. HMRC scans Government and commercial data from the likes of financial institutions, Land Registry, DVLA and employers. It uses this information to identify businesses and individuals whose profiles indicate potential inconsistencies and then targets them for investigation.
- £34 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 achieve
Your chances of being investigated are increasing year on year. We can protect you from the costs of any professional fees that arise should you be subject to investigation.
To find out more about Tax investigation fee protection, and how to subscribe to this service in 2021, please contact your engagement partner or Emma Puddick on 020 8988 6120 or email@example.com today.Talk to Barnes Roffe today