Tax Investigation Insurance

Peace of Mind for Monahans Clients

Every individual taxpayer and business is at risk of being chosen at any time for a tax investigation purely on a random basis.  And they may be able to go back for up to twenty years.

No one is immune

Why you could be chosen?

HMRC has become more sophisticated in its approach to tax investigations.  With new resources and new powers, they have significantly increased the number of tax enquiry cases with the aim of maximising their tax take.

HMRC has access to significant amounts of data which they use to identify who to investigate or they may act in response to a tip off or simply target specific business types.

They have recently undertaken a campaign aimed at plumbers that led to five plumbers being arrested and another 600 being placed under civil investigation.  They are also focussing on medical professionals, tutors, internet traders and other groups.

Why do you need fee protection?

Being picked out by HMRC can be a distressing and expensive experience that can be very disruptive and intrusive, not to mention prolonged.  Investigations frequently go on for a year or more.

Tax Investigation Insurance from Monahans will provide you with cover for our fees in representing you in an investigation, including supporting you during an HMRC inspection visit.

This cover should save you thousands of pounds and will enable us to argue your case without significant fee constraints.

Why choose tax investigation insurance from Monahans?

• We will place your policy through PFP, which is one of the UK's market leading fee protection scheme providers.  We consider that the policy offers good value for money because we believe the level of cover and terms and conditions are appropriate for our clients.
• By taking out a policy through Monahans, you will be dealing with a trusted and familiar face who knows your affairs - not an unknown accountant that may be appointed if you subscribe to an alternative scheme.
• Whilst apparently similar cover can be available from trade associations and banks within other more general insurances, it is often restricted in its application.  Our policy, on the other hand is very comprehensive and covers virtually all enquiries that are likely to be encountered.
• It provides cover to fund our professional fees resulting from any HMRC enquiry, PAYE, NIC and VAT dispute or compliance check.
• It will give you peace of mind, minimising the stress an enquiry can cause.
• At a surprisingly low cost, all this adds up to excellent value for money.
• Full policy terms and conditions are available on request.

How does it work in practice?

A company received a routine PAYE compliance visit from HMRC.  The Inspector argued that a car benefit should have been assessed on the Managing Director and wanted further tax of over £17,000.  Over two years later, a court decided that the tax was not payable and over £6,000 of accountancy fees were paid by the policy.

A business suffered an enquiry into aspects of its accounts lasting for more than two years.  A favourable settlement including tax, interest and penalties was reached for £4,000 but accountancy fees of almost £8,000 were paid by the insurance.

A family owned company acquired a new business and HMRC challenged the split of the purchase price.  After more than two years of arguement with HMRC, a tax saving of over £19,000 was achieved and fees of over £3,000 were settled by the policy.

So, protect yourself, or your business,

Contact us now........

email Anthony 

or call him on (01793) 818300

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