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Tax Investigation Insurance

Having a Solar Protect policy at your disposal means that should you be one of the many 1000's of businesses or individuals that are selected by HMRC each year to look into your tax affairs your own accountant (Your tax return agent) can get on and defend you robustly. You have the peace of mind knowing that your accountants fees will be paid by the insurance without any Excess for you to find.

If your turnover exceeds £10 million then please call us for a bespoke quotation on 01795 841310.

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From the 25th May 2018 you have to give us consent to store your personal information relating to your insurance needs. This information is required by us to obtain new business  quotations from insurers/underwriters, if required that could include credit providers/credit & debit card payment providers (these are called 3rd parties) we will always store this information securely and would never pass this onto any other party without your consent. You are also able to withdraw your consent at any time in the future. By completing this application to obtain a quote for your needs you are consenting for us to hold our personal information. 

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Useful Information

Click the topic below to expand the section

Accountants hourly rates explained

Our policies protect 3 different options for an Accountants (your tax return agent) hourly rate
• Upto £150 per hour (option 1)
• £150 - £200 per hour (option 2)
• £200 - £300 per hour (option 3)
If you know that your Accountant (your tax return agent) charges £175 per hour then you should select option 2, if they charge £250 then you should select option 3
If your accountant charges £325 per hour you have two options
You can take out option 3. The policy will pay the first three hundred pounds per hour of a claim and you can pay the difference direct to your accountant or you can call us direct for a quote to cover the whole £325 per hour
We appreciate that many accountants (your tax return agent) charge a relationship fee to look after your affairs and as such do not ‘publish’ an hourly rate. The majority of our policies are issued at option 1, so will cover upto £150 per hour. If your accountant at the point of enquiry tells you the rate will be £175 the shortfall can be made by you. Cover will not be excluded because the hourly rate selected is too low

What is covered by the policy?

The cover provides representation costs incurred by your Accountant (your tax return agent), for up to £100,000 in any one claim, arising from:
  • Income Tax Self Assessment aspect and or full enquiries*
  • Corporation Tax Self Assessment aspect and or full enquiries
  • H M Revenue & Customs VAT disputes
  • Employer compliance disputes PAYE/ P11D/ NIC
  • IR35 disputes
  • Now covers business's with an annual turnover of up to £10 million
  • Fees incurred by your accountant attending meetings with H M Revenue & Customs (HMRC) or responding to correspondence from HMRC when you are subject to an HMRC check, enquiry, visit, meeting or dispute.
  • Includes professional fees incurred in respect of local review of the enquiry and preparation and representation at an appeal to a First-tier Tribunal or Upper Tribunal.
  • Cover is included for directors/partners personal returns and also applies even if you have income that does not generate from the business, there are some limitations to this income so please call for full details.

I have done nothing wrong, why should I worry?

Why should I worry about a tax enquiry?

Most enquiries are generated by computer "risk profiling" and many are selected completely at random.
As a result, HMRC sometimes picks the wrong target. Even if you have done nothing wrong, the taxman will not give and still try hard to find errors.

Which policy do I need?

Your Tax circumstances will place you in one of eight categories from a private policy at the lower end to a ltd Company or Partnership with turnover between £150,000 and £10,000,000 at the upper end. (if you turnover in excess of £10M just call us direct for a quote)
Which category do you fall into from the following
  • Individual Self Assessment
  • Sole Trader with a turnover of less than £85,000 per annum (not VAT registered)
  • Sole Trader with a turnover of less than £250,000 per annum and not registered for VAT
  • Sole Trader with a turnover of less than £250.000 per annum and registered for VAT
  • Sole Trader with a turnover of more than £250,000 but less than £10 million
  • Ltd/Partnership with a turnover of less than £150,000 not registered for VAT
  • Ltd/Partnership with a turnover of less than £150,000 registered for VAT
  • Ltd/Partnership with a turnover of more than £150,000 but less than £10 million
Once you have selected your correct status all you need to do now is select your possible accountants(your tax return agent) hourly charge out rate. (please see our guidance to this under 'Accountants hourly rates explained'

What powers do HM Revenue & Customs now have?

As of April 2009 HMRC have been able to visit business premises to inspect records covering all taxes including corporate, income, PAYE, NI, Capital Gains and VAT. They can now also issue written queries before you have even submitted your annual returns.This is a power they are now implementing more often.

Main Exclusions

  • Enquiries or Disputes, which have commenced prior to the inception of the policy.
  • Fees incurred reconstructing books and records that have been poorly maintained.
  • Enquiries or Disputes where fraudulent evasion of tax is involved.
  • Enquiries or Disputes resulting from tax returns, which are submitted more than 90 days after the statutory filing date.
  • Costs incurred without the Insurers consent.
This list is not exhaustive. please see Policy Wording and Terms & Conditions.

What is Tax Investigation Insurance?

Tax Investigation Insurance is an insurance policy that will fully reimburse your accountants (your tax return agent) fees up to £100,000 if you are subject to enquiry by or dispute with HMRC.
A Solar Protect policy will enable your Accountant (your tax return agent) to:
  • Deal with any correspondence from HMRC
  • Attend any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal
  • Having the security of knowing that fees will be met in full will enable your Accountant (your tax return agent) to defend your position robustly
  • Premiums are Annual Premiums.
  • Premiums are inclusive of 12% IPT. 
  • Premiums and IPT are due in full in advance / at commencement of scheme.
  • There is a NIL excess on all policies.
  • Our cancellation terms are pro rata returns if the policy is not required mid term (assuming no claim on policy).

Can anyones tax affairs be scrutinised by HMRC?

Anyone that pays tax can come under scrutiny. Every year, HMRC opens enquiries into thousands of personal and business tax returns and accounts. VAT and PAYE payments are also thoroughly checked. The aim in every case is to collect more tax.
A proportion of cases will be selected for full enquiry on an entirely random basis as part of the Error and Fraud Analysis Programme (EFAP). The selection will be carried out by Head Office from across the entire tax credits population. These cases are known as EFAP enquiries.

Limits of Indemnity

Special Civil Investigations             £10,000
Judicial Review                             £10,000
All Other Claims                         £100,000

Directors & Partners

Directors or Partners (including their spouses / civil partners) of declared clients are automatically included, subject to the agreed external income limit of £50,000 per annum.