Any self-employed individual or small business can be subject to a tax enquiry or dispute with HM Revenue & Customs (HMRC). Even with no wrongdoing on the part of the taxpayer HMRC can conduct routine enquiries into their tax affairs. Where you use sub-contractors HMRC can go through and potentially re-classify your sub-contractors as employees and go back to earlier years and calculate the tax that should have been deducted.
The cost of defending such enquiries can potentially be large and it is important to ensure professional representation should HMRC come knocking.
Tax Enquiry Insurance will cover up to £50K of fees incurred by our specialists or your accountant in the event of an enquiry or dispute with HMRC.
Tax Insurance Cover
Renowned experts to defend your case
Cover for limited companies, sole traders, and partnerships
MORE TAX ENQUIRY INSURANCE POLICY INFORMATION BELOW
Nuts & Bolts
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
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.
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.
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.