Tax Investigation Insurance:
How would you handle a 37-month investigation?

The following may be a worst-case scenario, but it tells us a lot about how HM Revenue & Customs operates...

A dentist was picked up by the tax authorities and subjected to a full enquiry that lasted 37 months. His wife, also a dentist, endured an investigation lasting over 30 months. In the end, they paid £6,000 to the inspector.

The investigation was very intrusive and the couple were asked to provide personal bank statements. Like most, the dentists were surprised to have to explain their personal accounts.

Usually, a full enquiry will look back over 3-6 years of accounts. However, there has been a case of an inspector wanting to go back 14 years! Imagine how much you would have to pay your accountant at the end of all that!

With Tax Investigation Cost Protection from Professional Fee Protection Ltd (PFP), you can benefit from insurance of up to £75,000 towards accountant or investigation specialist's fees in the event of a tax investigation, and also receive expert advice and support throughout the process.

PFP also provides unlimited advice on Human Resources and Employment issues with the HR Plus service.

March 2009