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As HMRC have become more effective and targeted in respect of compliance activity they are increasing the volume of investigations.
Compliance activity around PAYE accounts for a large proportion of investigations with no specific reason required to undertake a Compliance Review in this respect.
Inquiries often target a particular transaction or income source and the highly effective reliance on software has increased inquiries into compliant returns with fees incurred defending the position often exceeding the stated tax liability of the inquiry.
The insurance will cover the cost of defending the investigation up to £50,000
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