Tax Investigation Insurance

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10+ Years in Business

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The number of tax and VAT investigations completed by HMRC is on the rise every year - anyone can be selected for an investigation by HMRC (businesses, directors, and individuals).

Tax Investigation Insurance is a scheme that covers the clients of an accountancy practice for any professional fees that result from an investigation by HMRC.

What Triggers an HMRC Tax Investigation?

HMRC claims compliance checks are usually triggered when figures submitted on a return appear to be wrong in some way.

For example, if a small company makes a large claim for VAT, or a business with a large turnover declares a very small amount of tax.

Furthermore, tax investigations are more likely if you file tax returns late, pay tax late, or make errors that need correcting. 

What is HMRC Investigation Insurance?

Tax investigation insurance – also known as legal expenses insurance or HMRC investigation cover – will reimburse the professional fees incurred for defending you in the event of a tax enquiry.

This type of cover could potentially save you thousands of pounds in fees for professional costs for things like dealing with correspondence from HMRC and attending meetings with HMRC.

Top tips for business owners to avoid an HMRC tax investigation:

  • Make sure you understand all of your tax liabilities
  • Ensure records are complete and check accuracy on a regular basis
  • Consider bookkeeping software to keep track of your accounts
  • Speak to your accountant or a tax advisor if you’re in doubt

With LCP Accounting you can be sure that you are in safe hands, contact us today for help with understanding your tax liabilities and whether tax investigation insurance is right for you.

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