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. This applies to private individuals and to businesses.
No one is immune.
Why you could be chosen?
An investigation may be triggered when HM Revenue & Customs (HMRC) pick up something they see as unusual on a tax return. In fact you don't need to have done anything wrong to be selected for an investigation, if any of the the following areas are higher than average for you or your business, you may well be at risk:
- motor expenses.
- building repairs.
- legal costs.
- levels of stock or work in-progress.
Local newspapers, adverts, national statistics and enquiries into other businesses, even an overheard conversation in the pub, can all be the starting point for an investigation. Or they may act in response to a tip off. But they don’t need to have a reason at all, you could simply be chosen at random.
Why do you need fee protection?
Being investigated by HMRC can be a distressing and
expensive experience that can be very disruptive and
intrusive, not to mention prolonged. On average,
investigations last between three and nine months, but
sometimes they can go on for a year or more.
If you need us to represent you and to argue your case,
you will be liable for our costs. Monahans Tax
Investigation Insurance provides our clients with cover for
costs we incur in representing them in an investigation.
- The tax authorities don’t need a reason for opening an investigation.
- You could easily be selected at random.
- Any person or company who completes a tax return could be investigated.
- Statistics show that over the last five years, the money clawed back from enquiries has increased by over 65%.
Source: Inland Revenue/Financial Times January 2005. - HMRC's inspectors are being offered bonuses to recover more unpaid taxes and, combined with higher targets, are expected to lead to an increase in the number of tax investigations.
Source: The Times January 2007.
What is Monahans Tax Investigation Insurance?
A scheme for Monahans clients that pays the professional fees required to provide you with the right level of representation should you be subject to an investigation or dispute with the tax authorities. Without this cover, you would need to pay for any of Monahans costs incurred.
Why choose Monahans Tax Investigation Insurance?
- Monahans Tax Investigation Insurance is placed 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 provided are appropriate for our clients.
- By taking out a Monahans policy, you’ll be dealing with a trusted and familiar face who knows your affairs – not an unknown accountant which may be appointed if you subscribe to an alternative scheme.
- It provides cover to fund our professional fees resulting from any HMRC investigation or PAYE, NICand VAT dispute.
- It will give you peace of mind, minimising the stress an investigation 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.
If you would further information about our Tax Investigation Insurance, or to be sent a leaflet please contact Anthony Cohen on 01793 818300 or click here to send him an email
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HM Revenue & Customs instigates 1000 new tax investigations every day.......make sure you're protected.
How does it work in practice?
A family run building firm was involved in a dispute about its VAT registration. The case was decided in the client's favour and over £30,000 of VAT was saved. In the three year period of the dispute, costs of around £8,500 were incurred - and covered in full by insurance.