FAQ
What is a Tax Investigation Service?
HMRC tax investigation is time consuming, stressful and could cost you money even if you’ve done nothing wrong.
HMRC Investigations can last for many months. During this time you could find yourself incurring professional service fees as well as having to deal with costly business disruption and probing questions. Even if you’re found to owe nothing you will still have to pay your professional representation fees.
HMRC use sophisticated software to cross match a wide range of data sources and any anomalies can lead to an investigation. They do of course continue to carry out random investigations.
For an annual service fee, you can safeguard yourself from the cost of professional fees associated with a tax investigation matter.
Is there an excess payable on my cover?
No excess is payable provided that the HMRC review falls within the definition of what is covered by Tax Safe within the Tax Safe Policy and subject to stated maximum service cover limits.
Who deals with the HMRC enquiry work?
The accounting firm associated with your policy will act for your Tax Safe covered tax entity.
What will Tax Safe pay for?
Tax Safe will cover the billable costs reasonably and necessarily incurred in acting for your taxation entity in connection with
an accepted claim in respect of a HMRC enquiry and subject to stated maximum service cover limits.
Is my premium going to increase if I make a claim?
The future pricing of Tax Safe will not be affected by any claims made by a covered tax entity. Tax Safe is charged equally to different brackets of tax entities.
Are there any restrictions to cover?
You must purchase Tax Safe through your covered entities tax advisor; and
you must be aware of specific exclusions your tax advisor may have.
Are Directors or Partners of a Tax Safe covered entity also covered?
Provided they fall within the ‘Private Client’ definition, Directors and Partners for whom the Tax Advisory acts as the tax return agent are covered within the Business Client premium. Otherwise a Director or Partner will need to be covered separately as a business client
The following are Private Clients:-
a) An individual not falling with the definition of a
business client
b) A trust with no trading income
c) A charity with no trading income
d) A non-profit organisation as regards its non-trading activities.
What if there is more than one return?
Each of your taxation entities must separately pay for cover under Tax Safe.
What about changes in the taxation status of a client?
If your status changes, for example, becoming self-employed this means you will need fresh cover
on the new status from the earlier of the start of the next policy year or the date that your first tax return (including VAT or PAYE returns) reporting that status
is submitted to HMRC. We encourage you to contact your Tax Advisory as soon as possible upon a change or status.
What if I cease to be a client of my Tax Safe Tax Advisor?
If you cease to be a client of your Tax Advisor you will no longer have the benefit of cover via the Tax Safe service purchased from them.
I have business activities outside the UK – are these covered?
You will not be covered for business activities outside of the UK save for any enquiries raised by HMRC
in relation to UK taxation in connection with those activities. The UK is defined as United Kingdom of Great Britain and Northern Ireland excluding the Isle of Man and the Channel Islands.
Have a Different Question?
Submit a query below or email us at support@taxsafe.uk