Tax Investigation Protection Available
Our Tax Investigation Service will cover our professional fees that result from most types of HMRC enquiry or investigation. Unlike some fee protection products that appoint their own advisors, our Service ensures that we can represent you throughout. We believe that we know your business best and we want to be there for you when you need us most.
Peace of Mind
Under the Tax Investigation Service, we can reclaim our costs in protecting you during a tax investigation and we will be able to defend you in the event HMRC check your books and records or visit you to check PAYE or VAT Returns. Protection starts from the very first request.
Our tax investigation service, which is backed by an insurance policy that we hold with Croner Taxwise will cover our professional fees that result from most types of HMRC enquiry or investigation full details are listed in the ‘service summary’. For peace of mind, we recommend that every client should be protected in the event of a tax investigation and subscribe to our Tax Investigation Service as tax investigations are expensive and can last several months and even years.
We will be free to work on your case for as long as it takes to bring about a resolution, up to the policy limit.
For limited companies and partnerships, the tax investigation service provides inclusive cover for all relevant individuals. When a business signs up to the service, all its directors, partners and their spouses and company secretaries, will also receive representation during an investigation into their personal tax affairs, as well as those of their business.
To provide this service, we need to be acting as the personal tax agent for the individuals in question. A sole trade subscription is, however, required where the individual has any self-employment income (outside of the main business) and/or gross rental income received as a landlord that exceeds £50,000 or more per annum. If this additional cover is not taken out, these particular sources of income will not be covered by any future HMRC investigation into the individual’s personal tax affairs.
Additional Benefit: Round-The-Clock- Client Legal Helpline
When you subscribe to the service, you will get access to the helpline which is available to deal with common legal issues such as:
- Health and safety
- Employment and personnel
- Commercial legal matters
HMRC have the powers to make unannounced visits to any business. Sometimes these visits can be late at night. Clients who subscribe to our Tax Investigation Service will now be provided with access to a free helpline to provide you with expert advice on how to deal with this situation “there and then” should you receive an unannounced visit from HMRC.
When faced with this very real threat it is important you have the support and advice of an expert 24/7 and 365 days of the year. Our “out of hours” helpline will do this for you. It is not uncommon for HMRC to visit a business at 11.00 pm at night. Should this happen to you it is great to know that you will have the peace of mind of instant access to an expert to advise you accordingly.
What's included?
The service covers our fees in the event of a tax investigation and saves you from a potentially lengthy, worrying and expensive situation.
Service Summary
When you subscribe to our service we are able to make a claim against our insurance policy held with Croner Taxwise in respect of our fees incurred (up to £100,000 per claim unless otherwise indicated) when we defend a client who is subject to any of the following events:
A Full Enquiry
A Business Inspection Notice
This is where HMRC exercise their power to request entry to a person’s business premises and inspect the business premises, assets, goods and documents. It will feature the approval of an “Authorised Officer” of Revenue & Customs and the issue of an Inspection Notice for a short notice or unannounced visit or where the proposed inspection has been approved by the First Tier Tribunal. The notice will be issued under Schedule 36 paragraph 12(2) FA 2008.
An Aspect Enquiry
This is where HMRC enquires into one or more aspects of the self assessment tax return which may involve clarification of particular entries, to detailed consideration of whether those entries have been treated correctly for tax purposes. It may involve a check on the records upon which the particular entries were based. It will also feature the issue of a notice under S9A/S12AC TMA 1970 or paragraph 24(1) Schedule 18 FA 1998.
VAT / PAYE / CIS Compliance Visit Cover
This is where HMRC wish to carry out a routine PAYE / VAT/ CIS Compliance Visit where it is considered that professional representation is necessary and the matter cannot be dealt with by the client alone.
VAT Disputes
This is a challenge by HMRC to the accuracy or completeness of returns submitted. It will feature a disagreement over both the way in which VAT has been operated and over the amount of VAT due.
Employment Status Dispute
Where HMRC state that an individual previously classed as self-employed should have been subject to PAYE.
Gift Aid Inspections
Where a registered charity operating a Gift Aid Scheme with HMRC is being reviewed.
Application for a Judicial Review
This is an application (during the course of a valid claim under the Policy) to the Administrative Court to challenge a decision of an official where no other legal recourse is available to the applicant. The limit of indemnity for this cover is £5,000.
PAYE / NIC / CIS Disputes
This is a challenge by HMRC to the accuracy or completeness of returns submitted in accordance with Pay As You Earn / CIS Regulations. It will feature a disagreement over both the way in which PAYE / CIS has been operated and over the amount of PAYE / NIC due.
IHT Cover
This relates to an estate where our involvement is considered necessary following the submission of an IHT return which has been wholly prepared by us.
Partners/Directors Cover
Where a partnership or limited company join we may also make a claim in the event of either an aspect or full enquiry into the personal returns of the partners and directors and their spouses and company secretaries (where we prepare the tax return). This automatic cover will not extend to individuals with any self-employment income (outside of the main business) and/or gross rental income received as a landlord that exceeds £50,000 or more per annum. A separate sole trade fee is payable to cover these additional elements. We must also be the tax return agent at the time the enquiry commences.
Interventions Cover (Informal Enquiries)
This is where HMRC issue a routine letter or telephone call with a view to obtaining clarification on particular points on a self assessment tax return without the issue of a statutory notice and not dealt with or excluded under any other section of this policy.
Coronavirus Job Retention Scheme Grant Enquiries
This is a challenge by HMRC to the accuracy of job retention scheme claims submitted. It will feature a disagreement over both the way in which the job retention scheme has been operated and over the amount of grant income received by an employer.
Code of Practice 8 Investigations
This is where HMRC Specialist Investigations conduct an investigation in accordance with Code of Practice 8. The limit of indemnity for this cover is £15,000 (where fraud is disproved).
IR35 Status Check
This is where HMRC write asking if it has been considered whether the client falls within the scope of IR35.
IR35 Disputes
This is where HMRC states a client should be subject to the IR35 legislation following a PAYE Compliance Visit or the issue of a notice under paragraph 24(1) Schedule 18 FA 1998. It will feature a disagreement over whether this legislation applies.
Exclusions
- The costs of making good any deficiencies in books, records, accounts or returns or work ordinarily capable of being done by the client.
- Returns which have been submitted more than 90 days late.
- Any claim involving the Civil Investigation of Fraud procedure (Code of Practice 9) or Specialist Investigations except where a Code of Practice 8 booklet has been issued (only where fraud disproven and up to our insurer’s policy limit of £15,000).
How Much Will It Cost?
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Individuals or trusts £50.00
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Sole traders of any amount / landlords where gross rental income exceeds £50k £150.00
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Partnerships / limited companies (up to £250,000 turnover) £210.00
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Partnerships / limited companies (£250,000 - £1 million turnover) £300.00
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Partnerships / limited companies (£1 million - £10 million turnover) £420.00
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Businesses (over £10 million turnover) Bespoke quote
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Multiple companies in the same group taking up cover Bespoke quote
FAQs
Every taxpayer who submits a tax return is at risk of a tax investigation – and you needn’t have done anything wrong to trigger an investigation. Whether you win or lose, you always have to pay the cost of handling the investigation, which is over and above our normal fees at DRG Chartered Accountants and the costs involved could be substantial.
Our Tax Investigation Service will cover our professional fees that result from most types of HMRC investigation or enquiry.
I’ve done nothing wrong, why should I worry about a tax enquiry?
Can anyone’s tax affairs be scrutinised by HM Revenue & Customs?
I need to reduce my spending in the current economic climate
I don’t think I need protection
I’ve already got some protection through a trade subscription or policy. e.g. FSB
How much could a tax enquiry cost me in professional fees?
Is there anything I can do for peace of mind?
What is a Tax Investigation Service?
It is a Service set up by us and is backed by an insurance policy we have taken out in our own name with and protects our clients who suffer a tax enquiry. For a small annual fee, you can join our Service and obtain the benefits described in the Service Summary. When you subscribe to our service we are able to make a claim against our insurance policy held with Croner Taxwise in respect of our fees incurred. What are the main benefits to subscribing clients of this Service?
- We will defend you, if and when you are selected for a tax enquiry by HMRC
- The potentially high costs of professional fees for that defence will be claimed under the practices’ insurance policy
- It will not be necessary to accept unreasonable tax charges by HMRC due to concerns about professional fees
- You will also get free access to a 24/7 business legal helpline.
What is protected by the Service?
Under the Service, subscribing clients will be fully protected and the practice will claim under our own insurance policy for up to £100,000 of professional costs, in the following circumstances:
- A HMRC enquiry into a personal or business tax return
- A HMRC enquiry into any business accounts, including those of sole traders, partnerships and limited companies
- A dispute with HMRC where additional VAT is being pursued
- A dispute with HMRC where additional PAYE tax or National Insurance Contributions is being pursued
- A dispute with HMRC relating to the tax status of employees or subcontractors
What is protected by the business fee?
To ensure seamless protection, the business fee protects enquiries into the tax returns of the directors, partners, and their spouse and company secretaries providing we prepare their tax returns. However, where the individual has any self-employment income (outside of the main business) and/or gross rental income received as a landlord that exceeds £50,000 or more per annum, then a separate sole trade fee is payable. If this additional cover is not taken out, these particular sources of income will not be covered by any future HMRC investigation into the individual’s personal tax affairs.
What is not protected by the Service?
Some costs will not be protected under the Service, including the following:
- Outstanding taxes, penalties, interest or any other amounts due to HMRC
- Defence of clients in criminal prosecution cases or serious fraud enquiries
- Fees relating to pre-existing tax enquiries, or enquiries where tax returns were submitted to HMRC later than the statutory time limits (90 days)
- Tax avoidance schemes
Who are Croner Taxwise?
Croner Taxwise are specialist providers of Tax Enquiry Insurance and are committed to working in conjunction with DRG, thus ensuring your interests are fully protected.
How do I sign up?
To find out more or to take out an annual subscription, please get in touch with us at DRG by calling 01628 760000.