Introducing our Tax Investigations Insurance:
At a time when HMRC seems more stretched than ever, you would think the chance of a tax investigation is relatively low. However, with a significant deficit in the UK economy, the new Labour government is set to hire another 5,000 tax inspectors, so you can never say never…
Tax investigation insurance, sometimes called fee protection insurance, is a specific policy designed to cover professional fees incurred should you have an inspection from HM Revenue & Customs. The cost of not doing so could be an unnecessarily high tax bill.
Tax investigations can happen to anyone – whether you are an individual or a business – however good your records are. HMRC regularly undertakes random enquiries as a means of policing the system. There has also been a recent increase in R&D reviews and VAT and PAYE remain popular taxes that HMRC seems to target.
If you do not have adequate insurance cover, costs can quickly escalate which could put a potential strain on you and your business.
Here at Lambert Chapman, we offer Tax Investigations cover as an add-on service and we test the market annually to ensure we can offer the best deal possible for our clients.
Why should you take our fee protection insurance?
- Financial saving – should you be selected for an inspection, significant time could be spent by your professional advisers defending you and your business. With the average claim going into the thousands, do you have surplus cashflow and profit to spend defending yourself?
- Time-saving – inspection timings can vary enormously, some can be over in a matter of hours, but others can take months and sometimes years to resolve. Do you have the time and energy to run your business and defend yourself?
- Reassurance and peace of mind – with relatively low premiums, you can remove the pressures that a tax investigation places on you and your business meaning you can sleep a little easier at night. Depending on the type of investigation you have, you could potentially have insurance cover up to £100,000.
It is for all the reasons set out above that we always encourage clients to consider this additional cover.
We will be writing to our clients over the coming weeks to introduce the service for 2025/26 and should you have any questions, please do not hesitate to contact me or your usual contact at Lambert Chapman.
Disclaimer
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.