Insuring against the Taxman

HM Revenue and Customs (HMRC) enquiries can be expensive, disruptive, intrusive and time consuming.

There has been a significant increase in the number of enquiries raised, as HMRC have put extra resources into pursuing more tax.  As a result, businesses and individuals face an increased risk of an enquiry into their tax affairs.

If you are unfortunate enough to be chosen for enquiry by HMRC you may incur professional fees amounting to thousands of pounds. The average fee was £2,150 plus VAT for 2011. As your professional adviser, we may be required to be involved in lengthy meetings with inspectors or extensive correspondence in relation to your tax affairs.

Please note that the costs of tax enquiries are not included in our normal annual fees and clients who do not have separate cover will be charged the full amount of any such costs.

These fees often have no bearing on the amount of tax demanded and even if there is no additional tax to pay at the conclusion of the enquiry, you may still be liable for this unwelcome expense.

We provide a Tax Enquiry Insurance Service that is designed to pay all our professional fees incurred in dealing with these increasing numbers of HMRC enquiries and disputes.

We are often asked by clients if they should be subscribing for fee protection cover. Unfortunately, in most cases it is an answer we cannot give. What we can say is that many enquiries are made at random and that the cost of cover is relatively small, as such we consider it well worth our clients joining up to the scheme to benefit from the peace of mind it offers.

The policy period is 1 April to 31 March, however mid-year applications are also welcome.

For further information on Tax Enquiry Insurance and a quote pertinent to your business please contact us: www.wardwilliams.co.uk