HMRC investigations can be incredibly costly to an organisation. Receiving a bill for unpaid tax can be a surprise, especially if they believed themselves to be compliant when filing their tax returns. Furthermore, the additional costs incurred in order to fight a claim can quickly spiral. For smaller businesses, this can be a devastating monetary blow. Thankfully, there are insurance products available that can help.

What is tax investigation insurance?

This insurance product is a fee protection insurance. It will cover the professional costs of legal defence against HMRC as well as other expenses for the cost of a fixed one-off payment. This is particularly useful for self-employed individuals and small businesses, who may not have the necessary expertise or staff to defend themselves should they be subject to a HMRC enquiry.

Is tax investigation insurance worth it?

HMRC provide no warning of their investigations and they can happen at any time. If a business is accused of wrongdoing, then a large bill can land in their lap with no idea of how to dispute it. Even if they have the resources and knowledge to hire the necessary professionals to fight a claim, those costs can also easily run into the thousands. Tax investigation insurance provides peace of mind that, should an investigation arise, the resources will be available to fight it and mitigate its impact.

Even without the monetary costs, tax investigations can be incredibly time consuming, eating up time that could be spent on revenue generating activities, negatively affecting profitability.

If you are interested in this type of insurance cover, get in touch with J Sweeney. J Sweeney’s affordable cover, as well as our other services, are ideal for many small businesses and self-employed people. Contact us to find out how we can support you.