Tax Investigation protection guide: What is it & why do I need it?
Find the answers you need in our tax investigation protection guide.
What is Tax Investigation Protection?
Tax investigation protection is an annual policy that will pay our fees to deal with an HMRC tax enquiry in the event that HMRC start an enquiry into your tax affairs. The costs of these enquires can sometimes run into thousands of pounds and this gives you reassurance that our costs are covered and we are able to help you defend the enquiry.
Why do I need Tax Investigation protection?
Since ‘Schedule 36’, HMRC has now been granted wider information and inspection powers which has led to HMRC enquiry activity at an all-time high. These investigations are selected completely at random and anyone who pays tax can be subject to HMRC’s enquiries so it can helpful to be prepared.
Some people believe investigations only occur when wrongdoing is done with tax returns- this is NOT true. HMRC can investigate you even if your tax return and business records are accurate and the tax man finds no errors. The fees that occur with these investigations can be in the thousands and taking out Tax Investigation insurance with Cardens could protect you.
What is not covered by the service?
The Tax Investigation protection does not cover routine compliance work such as filing your tax return etc. It also does not cover criminal prosecutions and fraud, as well as any tax interest or penalties that may be payable as a result of the enquiry.
It also does not cover any enquires that commence prior to subscribing to the fee protection service with Cardens.
What can Cardens’ Tax Investigation protection do for me?
Cardens’ Tax Investigation protection means that we will deal with your investigation and its costs if it should happen. We take insurance on your behalf to cover your additional fees for up to £75,000 for the following events:
- Attendance at any meeting with or dealing with any correspondence from HMRC
- Income & Corporation Tax Self-Assessment Full & Aspect Enquiries
- VAT Disputes & Employer Compliance Disputes (PAYE/P11D/P9D/NIC/IR35/CIS)
- Automatic private individual cover for all directors or partners and their spouses for their personal tax returns (as long as we complete their Tax Returns and they show no other self-employed income)
How much will it cost me?
Tax Investigation protection costs really depend on the size and needs of the business so please contact us so we can give you a tailored quote.
How do I sign up to Tax Investigation protection with Cardens?
We hope that you found this tax investigation protection guide useful.
Give us a call on 01273 739592 and we can transfer you to the specific manager who deals with your affairs and will be able to provide a tailored quote for you. Alternatively, if you want a few questions answered you can email us at: firstname.lastname@example.org.