Fee protection service
CT provides a Tax Fee Protection Service for all of our clients as standard. We hold an insurance policy with Vantage that provides cover for professional fees incurred for work undertaken on clients’ behalf relating to HMRC investigations.
This page does not give full details of the cover provided; a copy of the full policy wording is available on request.
What’s included in the service
Professional fees incurred in respect of:
- Corporation Tax and Income Tax full or aspect enquiries
- PAYE/NIC compliance checks from the outset and disputes with HMRC following such checks
- IR35/Employment Status/CIS enquiries and disputes
- VAT compliance checks from the outset and disputes with HMRC following such checks
- Enquiries under Section 60 or 61 of the VAT Act 1994, provided that at the culmination of such investigation it is proved that you or your business was not found guilty of dishonesty, fraud or fraudulent intent
- Business record checks, inspections and interventions under HMRC’s Information & Inspection Powers at Schedule 36 FA 2008
- Inheritance tax/ Probate return enquiries
- Stamp Duty and Stamp Duty Land Tax Enquiries
- National Minimum Wage / National Living Wage enquiries
- Child tax credit enquiries
- Student Loan enquiries
- Gift Aid enquiries
- Companies House confirmation statement enquiries
- Enquiries into Scottish taxes
- Auto enrolment return enquiries where your accountant has been engaged to complete the appropriate reporting statements and declarations
- Code of Practice 8 investigations, provided that at the culmination of such investigation it is proved that you or your business was not found guilty of dishonesty, fraud or fraudulent intent
- Applications for judicial review
Also included is an employment, health and safety and legal helpline – see our document below for how to use this.
What’s not included in the service
Any fees or costs:
- Incurred prior to the acceptance of a claim by Vantage
- In respect of any work undertaken prior to receipt of notification of enquiry by HMRC
- In respect of any claim arising from or relating to a circumstance that occurred prior to or existed at the inception of this Policy
- Costs relating to time spent during a review of the business or other financial records by HMRC, unless this has been authorised in advance by Vantage
- Relating to a criminal prosecution or an enquiry conducted by HMRC under the Civil Investigation of Fraud procedure (Code of Practice 9)
- Relating to any claim arising from an enquiry into a tax return that was not submitted within 90 days following expiry of the statutory time limits
- In respect of work that should be routinely undertaken by your accountant at your expense
- In respect of any claim made, brought or commenced outside the territorial limits
- Where a claim has not been notified within the period of insurance or notified within the notification period
- Any taxes, interest, penalties and fines or any other duties.
- Any claim where you have adopted a tax avoidance scheme
- Incurred as a result of professional negligence
Why is it needed?
The number of investigations instigated by HMRC has increased dramatically recently, as HMRC seeks to increase revenue.
In 2022-2023, HMRC raised an additional £34bn of additional tax by tackling avoidance, evasion and non-compliance on top of the £814bn overall tax revenue.
