When was the last time you thought about Tax Investigation Insurance?
Never? Makes sense. For many companies, it’s likely something they’ve never heard before, but what would you do if HM Revenue & Customs (HMRC) were to investigate your business?
Don’t they only investigate big companies?
The short answer is no. The long answer is no, they don’t.
In recent years, HMRC has significantly increased compliance checks as they look to recoup billions of £’s of taxation, in particular the grant funds given as part of the Coronavirus Job Retention Scheme (CJRS) and Self-Employed Income Support Scheme (SEISS).
Their new £100m task force, will be champing at the bit to catch out any company abusing the support systems, so what can you do to protect yourself, and your assets?
Tax investigation insurance will cover you in relation to any professional fees you may incur in the event of an investigation or compliance check. Can you afford to take the chance of not being covered if HMRC were to investigate your business?
How much does it cost?
Let’s get down to brass taxes, how much is tax investigation insurance going to set you back?
As you can imagine, the highly publicised abuse of these schemes has led to the rising cost of premiums due to the anticipated increase in activity involved in checking such schemes.
Some insurers have increased their costs significantly, and as a result, we shopped around to secure a more competitive price, while still ensuring the quality that you would come to expect from Ascendis.
Below is a breakdown of the cost of cover, which is dependent on your annual turnover:
- Limited Company/LLP – up to £10m – £250 + VAT
- Limited Company/LLP – £10m+ – £300 + VAT
- Sole traders/Self Employed – £150 + VAT
- Personal Tax/Private Clients – £100 + VAT
Is there any way to prevent an investigation?
Sadly not, but the insurance will cover the costs and work associated with defending you in the event of a tax enquiry. Taking out the cover will also:
- Remove your concerns about the cost of an enquiry.
- Ensure you receive the best defence so that your tax position is protected.
- Enable us to challenge HMRC’s assertions and assumptions head-on.
- Ensure that the basis of any enquiry is correct and that your case is handled fairly.
- Handle all communications with HMRC, including letters, phone calls or notices issued.
- Ensure the tax inspector is only asking for relevant information and documents, and provide all supporting information from our files that relates to your accounts.
- Prepare for and attend any face-to-face meetings with the tax inspector.
- Argue any complex or technical tax cases that are raised during the enquiry.
As an added benefit, you will gain access to round the clock legal support with a group of qualified solicitors specialising in employment law, health and safety matters, and commercial issues. All this and the peace of mind that you’ll be covered in the event of an investigation from HMRC!
To speak to us about how you can take out this much-needed cover, contact us today.