Tax investigation insurance – how to protect yourself from the tax man

13 August 2021
Close-up Of A Businesswoman Holding Magnifying Glass Over a folder of invoices in front of a computer

Tax investigation insurance can help protect you and your business if you ever find yourself under investigation from HMRC. The number of tax and VAT investigations is increasing every single year. And with HMRCs recent appointment of more than 1,000 investigators, coupled with the range of schemes and support that has been offered over the past year, we expect this to only increase further.

Our recent blog about the CJRS closing highlighted the fact that HMRC investigations are likely to increase over the coming year. This is because HMRC estimates there is a tax gap of £35 billion and believes over half of this is due to Small Business and Individuals. Not to mention the fact they believe much of the Covid support offered may have been fraudulently claimed. HMRC have already started issuing ‘compliance checks’ to businesses. And these are only likely to increase as they try to recover any incorrectly claimed furlough, for instance. So, now is the time to look into tax investigation insurance.

Tax and VAT investigations

A close up image of the HM Revenue and Customs logo at the top of a letter lying on top of a brown envelope

To target this, HMRC may undertake Tax and VAT investigations. These investigations are triggered for several reasons. This includes anomalies spotted on their sophisticated software, such as a larger than usual VAT reclaim or a decline in Tax liabilities or because they believe there are potentially fraudulent activities due to poor record-keeping, late filings or even due to a report made by the public. They are also often triggered totally randomly and ultimately any HMRC return can be selected for investigation without cause at any point.

These enquiries can be unfair on the taxpayer, and often do not result in any additional tax to pay. But still, they must be contended and dealt with causing stress and uncertainty. If this was not enough, the taxpayer is strongly advised to engage expert professional representation to ensure a robust response. This of course comes at a cost.

However, if you have tax investigation insurance, you get access to professional representation with no added costs.

Case study

“A small retail business received a VAT visit followed by some written questions from HMRC. They had the support of their accountant throughout, right from the notice of the VAT visit. This resulted in a timely conclusion of HMRC’s enquiry and virtually no additional tax to pay. The professional fees amounted to £3,200. Fortunately, the business subscribed to the Tax Investigation Service and these fees were met in full by the service.”

Our Tax Investigation Service Can Help…

In the instance you are one of the unlucky ones chosen by HMRC, we offer Tax Investigation Service which gives you professional representation and is backed by an insurance policy that provides up to £100,000 of professional fees.

We have partnered with Croner Taxwise to provide this service as they have a proven record of assisting with these enquiries for our clients. As well as this, it also provides access to a dedicated team of HR consultants who can assist you in growing your business by providing pro-active commercial advice regarding the management and well-being of your staff.

This service starts at £85 for personal tax clients, £200 for sole traders and £315 for limited companies. And it will cover you for all manner of compliance checks or investigations started by HMRC including:

  • Corporation Tax and Self-Assessment
  • PAYE, P11D and National Insurance
  • Construction Industry Scheme
  • VAT
  • Capital Gains
  • Furlough Claim, Income Support Schemes and other Covid related support.

If you want protection from the taxman through our tax investigation service contact us today at success@maple.uk.com. Alternatively, contact us or your client manager on 01332 207336 to ask for more information or to start your cover and get peace of mind.

Maple Accountancy is a firm of expert Business Advisors offering accountancy services, tax and business advice to owner-managed and family-owned businesses.

All clients are individual, and we tailor our service to your needs. Use the site to find out what makes us different and understand why you should appoint us.

Offices

Head Office
83 Friar Gate, Derby, DE1 1FL
01332 207336

Birmingham
3 Brindley Place, Birmingham, B1 2JB
0121 769 2197

Manchester & Leeds Chancery Place ​
50 Brown Street, Manchester, M2 2JG
0113 418 2078

London
1 Giltspur Street, London, EC1A 9DD
020 7127 0649

Contact

Maple Accountancy Ltd.

83 Friar Gate
Derby,
DE1 1FL

01332 207336
success@maple.uk.com

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