Charterhouse Blog

Charterhouse offers fee protection insurance for tax investigation

There are an increasing number of HM Revenue & Customs (HMRC) investigations taking place across the UK as the tax authority continues its investigation and enforcement campaigns.

No one is immune from these investigations as those being targeted are chosen at random. Having up-to-date tax records and a reputable accountant like Charterhouse will not prevent an investigation and, when it does happen, it can be wide-ranging and very disruptive. In our experience HMRC are very tenacious and fees can keep racking up. This can make things particularly difficult for smaller businesses because they are perhaps not so able to fund any defence.

These investigations pose a significant risk to individuals and businesses alike. To achieve the best possible outcome if this happens to you, you need to have professional representation.

Recent experiences

One sole trader paid an insurance premium of £300 and is now benefitting from protection against fees totalling £40,000 and rising following a protracted investigation.

Another substantial company with turnover in excess of £100m doesn’t have cover and is now embroiled in an investigation.  Fees to date are in excess of £20,000.  The client is now convinced of the need to take out the cover this year!

How we can help

To protect your business against the cost of an investigation, we strongly suggest that you join our tax investigation insurance scheme.

In the event of an investigation, we will provide all the support you need and deal with HMRC on your behalf (subject to certain criteria).

Without insurance, the cost of dealing with an investigation may run into many thousands of pounds.

Further reading

The Telegraph newspaper has recently produced an article HMRC’s £540m small business tax grab

Charterhouse is a dynamic accountancy practice located in Harrow and Beaconsfield, offering tax and accountancy services to businesses in London, Watford, Uxbridge, Windsor, Maidenhead and throughout the UK. Charterhouse writes blog articles to provide insights and expert advice.

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