Tax Enquiry Insurance

Helping to meet the cost of an HMRC enquiry

Tax Enquiry Insurance covers our fees in representing an insured client during a formal enquiry by Her Majesty's Revenue & Customs (HMRC). It also covers a VAT, PAYE or NIC dispute which may arise during the period of the insurance.

Who needs it?

  • Any person or business submitting a HMRC self-assessment return.
  • Any business operating a PAYE scheme.
  • Any business that is VAT registered.

HMRC has the power to open an enquiry into any tax return and no reason has to be given. Every year, thousands of such enquiries are opened and the costs of dealing with the issues raised during the enquiry can run into thousands of pounds.

Example claims:

Enquiry into Self-Assessment of a South East Consultant

As a result of this enquiry lasting six months there was a decrease of some £3,500 in tax due, much to the delight of the individual concerned, plus the insurer met the total cost of £1,410 for the accountancy fees.

London Leisure Industry Company

A full enquiry lasting 17 months resulted in no amendments required to the return. The £6,500 cost of dealing with the enquiry was met by the insurance.

Optical Fibre Engineering Company in the South East

HMRC raised a multiple aspect enquiry including research and development or Double Taxation relief for work carried out in one subcontinent and two Far Eastern countries. Unfortunately the 11-month enquiry resulted in additional tax payable however, the £1,880 cost of dealing with the enquiry was paid.

Taking out the Insurance

If you are a client of Carpenter Box, and providing you meet a small number of pre-requisites, you will be entitled to take out an annual policy protecting you or you business against many of the costs associated with either an aspect enquiry (an enquiry limited in scope to one or more particular areas) or, a full enquiry by HMRC into the tax affairs of an individual or a business.

Please check that you do not have similar cover elsewhere before taking out this insurance. Cover is limited in some respects. Participation in a Tax Avoidance scheme limits cover. Please read the Demands and Needs and Policy Documentation carefully.

Carpenter Box is regulated by The Institute of Chartered Accountants in England and Wales (ICAEW) a Designated Professional Body (DPB), and is authorised by the ICAEW to undertake general insurance activities, including the administration of a Tax Enquiry Insurance Practice Scheme under the Designated Professional Body.

Contact Chris Coopey for more information.

Registered to carry on audit work and regulated for a range of investment business activities by The Institute of Chartered Accountants in England & Wales