Many of our clients here at K.A. Farr & Co. rely on us to ensure that their tax affairs are always in order.
So, they don’t have to worry about anything going wrong.
We’re proud to provide an excellent service in this area, and part of that involves our Tax Enquiry Insurance service.
So, What is It?
Essentially, this insurance makes sure that if you or your business are ever investigated by HMRC. With regards to income tax, PAYE/National Insurance, VAT or corporation tax. Or even the National Minimum Wage. Any costs incurred in terms of our professional fees will be covered by the insurance, rather than coming out of your pocket.
Why Would I Need It?
Most businesses do their best to stay compliant with tax laws. However, there’s always the possibility that forms get misfiled or you simply forget to meet your obligations. In some circumstances, this can result in HMRC conducting an investigation. To ensure that things are not being deliberately covered up. If you are working hard to stay tax compliant, you should have nothing to fear. However, in reality, there is always the potential for something to go wrong. HMRC also carry out completely random but routine enquiries and investigations, particularly into small businesses.
If that happens, you want to make sure you’re protected.
How Does Tax Enquiry Insurance Protect Me and My Business?
When HMRC investigates a business, it invariably requires a lot of work. On the part of the business and their accountant to organise the documents and provide the information & evidence requested. This can be quite costly, often running into thousands of pounds in accountancy fees. Again, this can happen even if there has been no wrongdoing by the business in question. HMRC will not reimburse any accountancy fees incurred as part of an investigation.
However, Tax Enquiry Insurance will. For a very low premium, (only £125.95 per annum) you can ensure that your accountancy fees will be paid in full by the insurer in the event of such an investigation.
If you’d like to find out more about how you can protect your business from this sort of investigation by HMRC, contact K.A. Farr & Co. by calling 01704 211 434 or fill in our online contact form.