Tax investigation - Fee protection

TAX INVESTIGATION SERVICE SUMMARY

When you subscribe to our service we are able to make a claim against our insurance policy held with

Professional Fee Protection in respect of our fees incurred when we defend a client who is subject to

any of the following events:

A Full Enquiry – This is an extensive examination which considers all aspects of the self assessment tax return.

An Aspect Enquiry – This is where HMRC enquires into one or more aspects of the self assessment tax return

which may involve clarification of particular entries, to detailed consideration of whether those entries have been

treated correctly for tax purposes.

PAYE/VAT Compliance Visit Cover – This is where HMRC wish to carry out a routine PAYE/VAT Compliance Visit

where it is agreed that professional representation is necessary and the matter cannot be dealt with by the

client alone.

Pre-Dispute Cover – This is where it is considered necessary to involve us following a routine inspection/

compliance visit by HMRC. The limit of indemnity for Predispute cover is £1,000.

VAT Disputes – This is a challenge by HMRC to the accuracy or completeness of returns submitted. It will

feature a disagreement over both the way in which VAT has been operated and over the amount of VAT due.

PAYE/NIC Disputes - This is a challenge by HMRC to the accuracy or completeness of returns submitted in

accordance with Pay As You Earn Regulations.

IR35 Disputes – This is where HMRC states a client should be subject to the IR35 legislation following a PAYE

compliance visit or the issue of a notice under paragraph24(1) Schedule 18 FA 1998.

A Business Inspection Notice – This is where HMRC exercise their power to request entry to a person’s

business premises and inspect the business premises, assets, goods and documents

Code of Practice 8 Investigations – This is where Specialist Investigations of HMRC launch an enquiry and

issue Code of Practice 8 Booklet.

Application for a Judicial Review – This is an application (during the course of a valid claim under the policy) to

the Administrative Court to challenge a decision of an official where no other legal recourse is available to the

applicant.

Partners/Directors Cover – Where a partnership or limited company join our Tax Investigation Service we

may also make a claim in the event of either an aspect or full enquiry into the personal returns of the partners and

directors and their spouses and company secretaries (where we prepare the tax returns).