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Our specialist tax investigation insurance, Tax Defence, can protect you against the costs involved with a tax investigation by HMRC, giving you peace of mind that you’ll be covered.
As a freelancer, small-business owner or self-employed professional who is required to complete a tax return, it is important to make sure you are protected in the event of a tax investigation. The number of HM Revenue and Customs (HMRC) investigations are on the rise, with the tax authority continuing to launch seemingly unpredictable enquiries. No matter how good your records are, or whether or not you have done anything to trigger a review, you can find yourself subject to an in-depth enquiry.
Even though you cannot typically foresee a HMRC tax investigation, you can ensure you or your business are protected with Tax Defence insurance. Markel’s Tax Defence specialists are here to assist you in achieving the best possible outcome if HMRC decides to investigate you.
Cover at a glance:
- Covers professional fees for defending HMRC investigations
- Protection for VAT, PAYE, and Corporation Tax enquiries
- Access to expert tax consultants
- Peace of mind during complex or unexpected audits
- Available as an add-on to other policies
- Helps safeguard your time and finances
What is Tax Defence insurance?
Tax Defence insurance is designed to help you face HMRC on equal footing should you find yourself faced with an enquiry. Our tax investigation insurance provides you with financial protection against the professional fees involved with an HMRC tax investigation, and allows you to access expert advice during an investigation.
Many individuals, freelancers, professionals and small businesses are unprepared for tax investigations. An enquiry can result in a potentially in-depth and time-consuming review, distracting you from day-to-day professional duties whilst defending against HMRC’s technical expertise, and facing the risk of large professional costs and uncertain outcomes. With the typical tax investigation lasting 18 months, Tax Defence insurance is intended to support you in addressing operational and financial impacts during an enquiry.
You can tailor your tax investigation insurance online in a matter of minutes - giving you peace of mind that you are covered against unpredictable future events.
Aside from HMRC tax investigation insurance, there are many other forms of business insurance designed to protect you and your business when the unexpected arises. Take a look at the cover we offer here, or speak to one of our insurance experts on 0800 640 6600.
Cover starting at
£6.25 a month*
*Price based on a manufacturing business with an annual turnover below £100,000 and one employee, requiring professional expenses insurance cover only. The monthly cost is equivalent to an annual premium of £75.00 or less than 21p per day. Data correct as of 1 Nov 2024.
Do I need tax investigation insurance?
HMRC are continuing to use sophisticated technology to target taxpayers, with investigations becoming more complex and persistent. If you are someone who submits a tax return – for your business or personally - you could be subject to a random investigation. Typical businesses and professions which could benefit from Tax Defence insurance include:
- Landlords
- SMEs
- Manufacturers
- Retail businesses
- On-line sellers
- Restaurant/takeaways
- Taxi drivers
- Healthcare providers
- Publicans
- Construction businesses
- Farming businesses
- Arts/entertainment providers
- Professionals
- High-net-worth individuals
To make sure you are prepared in the event of a HMRC tax investigation, investing in Tax Defence insurance guarantees Markel’s experts are on your side. Our specialist cover and the expertise of our team mean you are supported through every stage of an HMRC investigation.
Example policy documents
If you have an existing policy with us, please sign in to view your policy documents.
Below you will find examples of the documents provided.
Why choose Markel for tax investigation insurance?
We offer insurance policies specifically designed to protect you and your finances in times of trouble.
How it works
Choose the cover you require
Get a quote you need in minutes
Buy online or contact one of our advisors
How much does Tax Defence insurance cost?
Tax investigation insurance from Markel starts from £6.25 a month*. Your tax investigation insurance cost will depend on a variety of factors, including the type of returns you make, the size of your business, the type of work you conduct, and if you have any employees.
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Frequently asked questions
These frequently asked questions are designed to help you and include questions relating to policy cover, pricing and ‘technical’ terms.
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What is a tax investigation?
A tax investigation is a thorough tax review conducted by the tax authorities, such as HMRC, to ensure that a taxpayer is paying the correct amount of tax. These investigations can be random or triggered by discrepancies in a taxpayer’s financial records. The aim is to ensure the correct amount of tax is being paid by an individual or business, and that there has been no evasion or fraud – in the case of evasion, HMRC aim is to recover any unpaid taxes.
The process usually begins with a formal notification from the tax authority. The taxpayer may be required to provide detailed financial records, including bank statements, invoices, and receipts. If any discrepancies are found, further action may be taken, which could include penalties or legal proceedings.
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Why might you be subject to a HMRC tax investigation?
HMRC may choose to investigate you for several reasons. For example:
- If you have any discrepancies in your tax returns, where your reported income, expenses, or deductions do not align with HMRC’s expectations or industry standards.
- If you have a history of filing or paying your taxes late, which could suggest potential compliance issues.
- If you are in a high-risk profession or industry, such as construction or hospitality, where you face increased scrutiny.
- If you have a sudden or significant change in income that does not match reported earnings.
For more detailed information, refer to refer to gov.uk or consult with a professional tax advisor.
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How far back can a HMRC tax investigation go?
HMRC can go back as far back as 20 years in a full enquiry, but they typically investigate up to four years of financial records. Understanding these time frames is crucial for maintaining compliance and ensuring that your financial records are always in order.
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How are Markel regulated?
Markel is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Find out more on the Financial Services Register.
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