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Tax Enquiry Fee Protection

The pressure on the Government to generate increased tax revenues has been well publicised in recent years. Indeed, HM Revenue & Customs (HMRC) was targeted with delivering an extra £7 billion in taxes each year by 2014/15. As a consequence, the number of tax enquiries undertaken by HMRC has increased significantly and this upward trend is expected to continue.

Any taxpayer can be targeted to check that they are paying the right amount of tax; answering all of HMRC’s questions takes time and the enquiries often drag on for months, and sometimes take years to conclude. It can cost thousands of pounds to defend you, whatever the end result. It is more important than ever to protect yourself against these costs.

We now have access to a policy which will offer cover for professional fees incurred by us for clients in the event of such an enquiry. Kime O’Brien will be insured by Professional Fee Protection Limited (PFP), a specialist company in this field. PFP will insure us for clients who wish to be included within the service. In the event of you being the subject of a tax enquiry or dispute, we can recover from PFP the costs of representing you and will therefore not need to recover our fees from you.

All possible aspects of any tax enquiry are covered. The indemnity limit is £100,000, although a lower limit will apply to some minor enquiries e.g. VAT and PAYE compliance inspections, or Business Records Checks.

Our charges for this service (which will be subject to VAT) will be:

  • Personal tax clients, including any with rental income of up to £50,000 per annum£60
  • Sole traders with annual turnover of up to £10m £120
  • Partnerships with annual turnover of up to £10m £150
  • Limited companies with annual turnover of up to £10m £150

Clients with income or turnover above these levels will be quoted for individually.

If you wish to take advantage of this service, please let us know. We will then send you more details and arrange for you to be included in our cover through PFP.

We would urge all clients to take advantage of this important service.

Next Step:

Please contact us if you need further advice.