What is tax investigation insurance?
HMRC can open an enquiry into any tax return, and some are picked entirely at random. Even when nothing turns out to be wrong, answering HMRC's questions properly takes time, and your accountant will normally charge for that time on top of their usual fees.
Tax investigation insurance, also called fee protection insurance, pays those professional fees for you. It doesn't pay any tax, interest or penalties that HMRC decides are due. It covers the cost of having a qualified professional deal with the enquiry on your behalf.
How FeeProtect works
You buy a 12-month policy online and your documents arrive by email. Cover can start as early as tomorrow. If a letter from HMRC arrives while your policy is active, you're covered for that enquiry, however far back the tax years in question go.
You keep your own accountant, or you can choose another suitably qualified adviser. Once your claim is accepted, their fees are paid directly, with no excess, up to your chosen hourly rate of £180 or £300 and a limit of £100,000.
Policies don't renew automatically. We'll email you a reminder a few weeks before yours ends, and the choice is always yours.
Common questions
How much does tax investigation insurance cost?
The price depends on the type and size of your business and the hourly rate you choose. Pick your description from the drop-down above for an instant price, with insurance premium tax included. Our guide to what tax investigation insurance costs explains what's behind the numbers.
Can I buy it for a limited company?
Yes. Choose the turnover band that fits your company. A business policy also covers the personal tax returns of its directors or partners at no extra cost.
Is there cover for sole traders, the self-employed and landlords?
Yes. Choose “Sole Trader” if you earn your income from a trade, or “Private Individual” if your income comes from rental property and investments.
Does it cover VAT and PAYE?
Yes. VAT and PAYE compliance visits are covered, as are disputes about National Insurance, CIS and IR35.
What isn't covered?
An enquiry that has already started before your cover begins isn't covered, and neither are tax avoidance schemes or fraud investigations. The Policy Summary sets out the full terms.
How do I compare policies?
Price is only part of the picture. Our guide on how to compare tax investigation insurance lists the questions worth asking, and there's another on whether the premium is tax deductible.
We're happy to explain what the policy covers, although we can't advise on whether it's right for your circumstances. FeeProtect policies are underwritten by ARAG Legal Expenses Insurance Company Limited and administered by ARAG plc.