Tax Enquiry Insurance
What is an HM Revenue & Customs (HMRC) Tax Enquiry?
In the UK the taxpayer is responsible for completing returns accurately and determining their own tax liability. HMRC open enquiries to check that taxpayers are paying the right amount of tax. They will also (where relevant) visit businesses in order to ensure that they are operating VAT and PAYE correctly.
Could I be subject to an HMRC Tax Enquiry?
If you or your business submits a tax return to HM Revenue & Customs (HMRC) then there is a risk that it could be subject to an HMRC enquiry or inspection. If you or your business is VAT registered or operates PAYE there is also every chance that HMRC will undertake an inspection to ensure that you are operating these correctly. Thousands of individuals and businesses are selected for such checks every year.
What does an HMRC enquiry involve?
HMRC will write to you and / or come and visit your business premises and ask you questions about how you have determined the amount of tax due. It is important that you have professional representation to ensure that HMRCs questions are answered robustly and accurately. Enquiries can last for months, even years and professional fees incurred dealing with the enquiry can amount to thousands of pounds, even where no additional tax is due at the end of the enquiry.
How can I protect my business and myself?
Our Tax Enquiry Insurance will cover costs incurred by your accountant up to £100k of professional fees defending you in the event of an enquiry, or if you prefer, it will cover costs incurred by our own specialist tax representatives who have many years’ experience dealing with tax enquiries. This will ensure that you have the best possible defence and get the right outcome.
Sykes Holiday Cottages members
Sykes Holiday Cottages members have the opportunity to protect themselves from any potential HMRC enquiry into their income derived from the letting, maintenance, ownership or disposal / sale of the properties. Be aware that HMRC are presently focusing on Capital Allowances and Income in the holiday let arena. If you have one property you can purchase the cover by selecting the relevant property ownership category … 1 or more than 1. In the event of a claim, you can either use Zeal Tax, the appointed specialists for Sykes, or your own accountant if you have one.
How do I purchase this insurance?
To purchase this insurance select the type of taxpayer you want to protect from the dropdown below. You can then create an account and purchase the protection.
Full details of the policy coverage are detailed within the policy documents which can be found below under Important Documents.