Why do I need Fee Protection Insurance / Tax Investigation Insurance?
If you are subject to an HMRC enquiry you can incur thousands of pounds in accountancy fees, even if at the conclusion it is found that there is no additional tax to pay.
For a modest premium, Tax Fee Protection Insurance covers accountancy fees incurred by your accountant in the event of an enquiry, providing you with peace of mind, knowing that your accountant’s fees are covered and you have the resource to provide a strong defence.
Being the subject of an HMRC enquiry is stressful, Fee Protection Insurance will help you to relax.
HMRC were targeted with achieving additional tax revenues of over £27 billion through compliance activities in 2016/17. They achieved £28.9 billion according to their anual report. In the past decade the number of enquiries undertaken by HMRC has increased significantly year on year. Any individual or business can be subject to an enquiry, even if your affairs are in order.
Through Sch36 of the Finance Act HMRC has wider powers than ever before. In recent years HMRC has recruited 2,500 new Compliance Officers to help achieve their ambitious targets.
The chances of you being subject to an HMRC enquiry have never been higher.