HMRC is changing the way it investigates tax compliance and, due to their efficiency in raising tax revenues, ‘aspect enquiries’ (investigations into part of a tax return) have become the most typical form of HMRC investigation. However, since HMRC was awarded increased powers of investigation in April 2009, interventions, reviews and inspections have also become far more frequent.
As a result of the complex and time consuming nature of tax investigations, the professional fees can be significant. We have therefore made arrangements with a leading insurer to offer clients professional fees insurance to protect themselves from the financial burden of such an enquiry.
Having reviewed the market, we have selected a fee protection policy that provides the appropriate cover, terms and conditions to meet most requirements. The wide scope of the policy is in direct response to the new tactics and powers held by HMRC. In particular, the policy covers certain time spent by us in connection with compliance visits, preparation, attendance at opening meetings, dealing with questions during the course of the visits and subsequent follow up.
We have negotiated the following premiums on behalf of our clients:
- Business – limited company - £160*
- Business – trading/professional individual/partnership - £160*
- Personal – individual not trading - £60*
* These premiums are for one year’s cover and include an arrangement fee and Insurance Premium Tax.
For further information about our professional fees insurance or for information on how we can help you if you’re facing an investigation, please contact Phil Blackburn or your usual contact partner.