Tax & Vat Enquiry Insurance ; FAQs

  1. What exactly does it cover me for? the policy is extremely comprehensive covering all our professional fees (& the fees of any further specialist advice sought) in dealing with any type of H M Revenue & Customs (HMRC) enquiry whether it be relating to VAT, income tax, corporation tax, PAYE & NIC or National Minimum Wage
  2. What about routine VAT & Employer Compliance (PAYE) visits by HMRC? at one time our fees in dealing with the initial (if routine) visit were not covered, now they are
  3. Is there an excess on the policy? No
  4. How many times can I claim in a year? as many times as you need to
  5. How much would it cost me if I didn’t have tax enquiry insurance & was subject to an HMRC enquiry? it varies enormously, a routine VAT visit with no subsequent queries or issues might only cost you say £200 in fees but a ‘full blown’ HMRC enquiry into your accounts & personal tax affairs can drag on for anything up to 2 -3 years, one case we recently settled on behalf of our client had been ongoing for 18 months and our fees were just under £2000 – covered by our insurers!
  6. I already have this type of insurance via my Public Liability Insurance policy or via my membership of The Federation of Small Businesses, (FSB) do I need to take out your policy as well? the problem with not having our insurance is that your insurers (or the FSBs) may insist on your HMRC enquiry being dealt with by their own specialist advisers & not by us. That isn’t ideal as we will then have to charge for any time we have to spend providing them with information, copy documentation or analyses which we hold in our accounts working papers or on our files, through our many years of dealing with your business and its tax affairs. Those fees probably won’t be covered by your insurance policy – you would need to check this specifically with your own insurers to be sure
  7. I haven’t done anything wrong, why would HMRC pick on me? HM Revenue & Customs (HMRC) is giving individuals and businesses a harder time by carrying out more tax enquiries and compliance checks, often selecting taxpayers for investigation at random or for no good reason. Anyone who pays tax can suffer an enquiry or compliance check by HMRC. If this happens to you will have to prove that HMRC’s suspicions are unfounded.
  8. It sounds like a good idea, how much is the premium? it’s £122.95 for a business premium and £67.95 for an individual, personal premium. Our policy year runs 1st June to 31st May & the premium is the same whatever time of the year you join. You will soon get your money back if you have any cause whatsoever to make a claim

To register your interest in K A Farr & Co’s Tax Enquiry Insurance please complete the enquiry form or call us on 01704 211434.