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Why Tradespeople Should Consider Tax Enquiry Insurance

Rhino Trade Insurance Tuesday, 1 April 2025

In the UK, tax compliance is absolutely essential for small businesses and sole traders. If you’re a self-employed plumber, electrician, decorator, or belong to any of the trades, you probably already know that keeping on top of your taxes is just part of the job. But with the UK government’s latest announcement, now is the time to be on top of your tax affairs and look for correct protection for your business.

In the 2025 Spring Statement, the government declared a renewed crackdown on tax evasion, aiming to increase the number of tax fraudsters charged each year by 20%. While this is targeted at those deliberately breaking the rules, it’s small businesses and sole traders - like many tradesmen and tradeswomen - who are most likely to get caught up in investigations, even if they’ve done nothing wrong.

That’s why now, more than ever, it makes sense to get protected. Tax Enquiry Insurance from Rhino can help with exactly that.

What is Tax Enquiry Insurance?

Tax Enquiry Insurance protects your business if you’re ever investigated by HMRC. That could be a random check or a deeper dive into your accounts and tax returns. Either way, these investigations can be stressful, time-consuming, and expensive—even if you’ve got nothing to hide.

This type of insurance covers the costs of legal and tax experts to represent you, explain your position, and help manage any disputes. That means you can stay focused on your work while the professionals handle the paperwork.

What Does Tax Enquiry Insurance Cover?

Rhino's Tax Enquiry Insurance can cover you for the following:

  • HMRC Enquiries and Investigations – A formal inquiry by HMRC into your corporation tax or income tax self-assessment, triggered by official notification from HMRC.
  • Employer Compliance Disputes – A dispute with HMRC following a routine review of your PAYE operations.
  • IR35 Disputes – An investigation into your employment status under the PAYE, NIC Regulations, or IR35.
  • VAT Disputes – An appeal against an HMRC assessment or written decision regarding VAT.
  • HMRC PAYE Control Visits – A compliance check or inspection by HMRC to review your PAYE operations.

Why Is Tax Enquiry Insurance More Relevant to Me Now?

With HMRC under pressure to increase the number of tax fraud cases brought each year, routine checks are expected to rise - especially among sole traders and small businesses, where the risk of unintentional error is higher.

Even if your accounts are spotless, an enquiry can still cause serious disruption. Responding to HMRC’s questions, gathering paperwork, and seeking advice from accountants can all eat into your time and money. And in the trades, time off the tools is money lost.

Tax Enquiry Insurance takes the pressure off. It ensures you’ve got experienced professionals in your corner, ready to act fast and help you get back to business.

How Much Does Tax Enquiry Insurance Cost?

Tax Enquiry Insurance with Rhino starts at just £35.00 a year—or £2.92 a month—giving you up to £10,000 of cover if HMRC launches an investigation into your tax affairs.

Your final price will depend on your business turnover, but getting a quote is quick and easy. Just pop a few basic details into our online quote tool and get your price in minutes.

How can Rhino help?

No one likes the thought of being investigated by HMRC, but following the latest govermnet announcement, it’s wise to be prepared. Tax Enquiry Insurance offers tradespeople affordable, expert-backed protection, so you can work with confidence - knowing that your business is protected should HMRC come knocking.

Give the team a call on 0116 243 7904 or grab a quote here to keep your business protected.


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