Tax investigations insurance
Protecting you against the costs of tax investigations
Tax investigations by the Revenue are becoming more common. The right expertise can make all the difference to the outcome of the enquiry, but too many people think they can take on the taxman themselves. More often than not this results in them being forced to accept unreasonable demands. Our Tax Investigations Insurance, available only to Simpkins Edwards clients, offers access to professional advice with the reassurance that you will not need to meet the costs of defending the enquiry.
Why might I need the Tax Investigations Insurance?
The Revenue can launch investigations into your tax affairs at random and with no reason given as to why you have been chosen. The cost of dealing with these investigations can be substantial, running into thousands of pounds. Our Tax Investigations Insurance reimburses the costs of our professional fees in the event you are selected by the Revenue for an enquiry.
What does the Tax Investigations Insurance cover?
The package insures you for our professional fees up to £75,000 if you suffer one of the following investigations:
- Income tax self assessment enquiries
- Corporation tax self assessment enquiries
- Employer compliance disputes
- VAT disputes
- IR35 disputes
- Aspect enquiries
Our package also provides a free, 24 hour Business Legal Helpline designed to help you ensure your business complies with the law. The helpline gives you access to a team of specialist advisers who can advise on employment matters, health and safety regulation and commercial issues.
What is not covered?
- Existing investigations and disputes at the time the Tax Investigations Insurance is taken out
- Investigations commencing after the insurance has ceased (the annual service fee runs to 30 September each year)
- Fees arising where the returns/accounts are submitted outside of the time parameters set in the Taxes Management Act 1970
- Attendance at routine VAT and Employer compliance visits
- Special Compliance Office, Special Investigations Section and HMRC Investigations Division cases
- Investigations in connection with Tax Credit Claims or any other benefits investigation
- Investigations on returns that have not been filed on time
How does the Tax Investigations Insurance work?
Once you have joined, we will send you a VAT invoice to confirm that you are a designated client within our scheme. If you are selected for investigation by HM Revenue & Customs (HMRC) you simply engage us to handle the enquiries on your behalf and we will debit the fees from your account. We will also make a claim under the insurance policy and credit your account with the proceeds. This means that you will normally have nothing to pay. We will continue to have the discretion to charge you for the work which cannot be reimbursed under our policy, but as we have negotiated a comprehensive range of cover, this is not likely to happen in normal circumstances.
How much will my premium be?
Fees start at £36+VAT for individuals and £54+VAT for businesses. Click here to view a schedule of fees to 30 September 2008 (pdf).
Who provides the Tax Investigation Insurance?
Our Tax Investigation Insurance is provided by Abbey Tax Protection, a trading division of Abbey Protection Group Limited, which is authorised and regulated by the Financial Services Authority. Abbey Tax Protection is the market leader in the provision of tax investigations insurance to the accountancy profession.
How do I take out the Tax Investigations Insurance?
Our Tax Investigations Insurance is only available to Simpkins Edwards clients. New clients are eligible to join the scheme, with no probationary period.
If you are already a Simpkins Edwards client, simply print and complete the Tax Investigations Insurance form (pdf) or speak to the partner responsible for dealing with your affairs.
For clients already part of the insurance scheme, we send out an annual renewal notice around 31 August each year.
For more information on our Tax Investigations Insurance, contact us.
