TAX ENQUIRY INSURANCE

What Does Tax Enquiry Insurance Cover? 

Up to £50K of fees incurred defending you in the event of a:

• Full or aspect enquiry 
• CIS status review
• PAYE compliance review
• IR35 dispute
• PAYE/NIC/VAT/Section 660A dispute

The policy will typically fund representation provided by ​Rhino Protects recognised experts but will also fund representation by an Accountant of the policyholders choosing, subject to the prior agreement of the insurer.

Refer to policy wording for full details of terms and conditions of cover.

 

Potential Claims

Below are some examples that may be covered under a Tax Enquiry Insurance Policy: 

• A self-employed plumber received a letter from HMRC starting a full tax enquiry.  HMRC believed the plumber’s income was low compared to the expenses declared.  HMRC requested details of the day books so that they could contact a sample of customers to verify that what work had been completed and how the plumber was paid.  The builder’s accountant was able to verify all of the expenses and how the cash was received.  Fees of almost £3,000 were covered in full by the Policy.  
• HMRC undertook a PAYE review into a building contractor and challenged the status of sub-contractors arguing that they were under the direct supervision and control of the building contractor and there was no obvious right of substitution.  Our experts successfully defended the contractor, pointing to the working practices and successfully demonstrating that the sub-contractors were genuinely self-employed.  The enquiry closed with no additional tax to pay. 

 

Advice Lines

You also get access to our tax advice lines which provides unlimited access to our expert advisors for support on any tax or VAT issues that you or your business may encounter.