Tax investigation insurance

Insurance to cover our fees in the event of an HMRC investigation

Are you concerned about the cost of accountancy fees in the event of an HM Revenue & Customs (HMRC) investigation?  You are right to be concerned! However we can protect our clients from big bills with our tax investigation insurance.  If you are not one of our existing clients, you can become our client to get FREE tax investigation insurance during your first year with us.  Read on ...

HMRC are becoming more tenacious when conducting investigations and they have increased the number of staff trained in investigation techniques.  They can select people or businesses at random.  Even if they find no problems YOU still have to pay any professional fees incurred and cannot reclaim this cost from Customs & Excise.

We cannot prevent HMRC investigations but we do offer our clients very competitive insurance cover for the following, common types of HMRC investigations:

  • HMRC VAT Disputes
  • Self Assessment Full Enquiries
  • Income Tax Self Assessment Aspect Enquiries
  • Corporation Tax Self Assessment Aspect Enquiries
  • HMRC IR35 Disputes
  • Employer Compliance Disputes
  • Schedule 36 Enquiries

Your Next Step...

If you are an existing client just phone us on 01631 562 643 or fill out our on-line form for a competitive quote.  The costs start at just £40.00 plus VAT.  If you accept our quote we will arrange your cover immediately so that you can stop worrying. An HMRC investigation is not pleasant but if you use our expertise, we can make sure that the tax man sticks to the HMRC's own guidelines and does not overstep the mark.

The policy is provided by Abbey Tax Protection, the market leader in the provision of tax investigation insurance to the accountancy profession.

Tax Investigation Insurance - Service Summary

Our tax investigations service is backed by an Insurance Policy which R A Clement Associates has taken out with Abbey Tax Protection.  We are able to make a claim in respect of the fees we accrue when we defend a client under investigation by HM Revenue & Customs for any of the following events:

  • Self Assessment Full Enquiry - The trigger point is the issue of an S9A or S12 AC TMA 70 or paragraph 24 (1) Schedule 18 Finance Act 1998 Notice by HMRC together with a request to examine all the business books and records or, in the case of a personal tax payer, all the underlying documents used in the preparation of the Self Assessment return.
  • Income Tax Self Assessment Aspect Enquiry - The trigger point is the issue of an S9A or S12 AC TMA 70 Notice by HMRC where there is a request to examine just certain boxes on the Return, subject to a Limit of Indemnity of £5,000.
  • Corporation Tax Self Assessment Aspect Enquiry - The trigger point is the issue of the Paragraph 24 (1) Schedule 18 Finance Act 1998 Notice by HMRC where there is a request to examine just certain boxes on the Return, subject to a Limit of Indemnity of £5,000.
  • HMRC Enquiries under IR35 - Covers HMRC IR35 Status disputes.  However there must be a written Contract for Service in respect of the liabilities which are being disputed.  The Contract must have been strictly followed and there must be a reasonable prospect of successfully contesting the Revenue's allegations.
  • Employer Compliance Disputes - The Service covers PAYE, P11D,CIS and NIC disputes and the trigger point is the issue of a letter, assessment or notice by HMRC, following a Compliance visit, providing there is a prospect of challenging HMRC contentions.
  • HMRC VAT Disputes - The trigger point is the issue of a written decision or assessment by HMRC, following a control visit, providing there is a prospect of reducing the alleged VAT liabilities.
  • Schedule 36 Enquiries - The trigger point is a request from HMRC to inspect assets, documents, records or business premises in accordance with Schedule 36 Finance Act 2008 in respect of Income Tax, Corporation Tax, PAYE, NIC, VAT, CGT, CIS and National Minimum Wage.  These enquiries have a maximum Limit of Indemnity of £1,000.

The main exclusions in our service are as follows:

  • Claims arising where the Annual Returns/Accounts are submitted late, that is, outside the time parameters set out in the Tax Management Act 1970, including those submitted as provisional or estimated within the time limits but later repaired outwith that time limit.
  • HMRC Special Investigations, Civil Investigations of Fraud, Criminal Investigations Sections, Counter Avoidance Sections and Code of Practice 8 and 9 cases.
  • Fee incurred prior to the written acceptance of a claim.
  • Enquiries and disputes existing at the time you subscribe to the Service.
  • Enquiries and Disputes following a voluntary disclosure of irregularities made to HMRC.
  • Enquiries into tax planning arrangements where HMRC have allocated a Disclosure of Tax Avoidance Scheme (DoTAS) Number and/or bespoke tax planning arrangements outside of the normal trade.

How does the Scheme work?

We will be responsible and have the discretion for making claims under our Policy and the is a maximum Limit of Indemnity of £75,000 in respect of our professional fees for any one claim.  Clients will be responsible for any fees that we cannot recover from our Insurers.  Once we receive your cheque, we will send you a VAT invoice as confirmation that you are a Designated Client of our Scheme.  In the event of your suffering an investigation, we will represent you and reclaim any costs incurred in dealing with the Enquiry directly from the insurance company.

What if I have similar protection from a trade association?

A Similar kind of protection via membership of a trade association is available but in the event of an investigation, we are unlikely to be able to represent you.  If you are investigated we, as your accountants, believe that we are the best people to defend you because we know you and your accounts.

 

Fee Protection

Having HM Revenue and Customs conduct an investigation on your personal or business affairs can be lengthy, stressful and costly...