Tax Investigation Insurance

Tax Investigation Insurance across the North East and North Yorkshire

At M Wasley Chapman & Co we offer tax investigation insurance for clients. We recommend that our clients seriously consider joining the scheme.


Since April 2009 HMRC are 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 submitted your annual tax returns.

Tax Investigation Insurance

Anyone that pays tax can come under scrutiny. Every year, HMRC starts enquires 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.

Most enquires are generated by computer “risk profiling” and many are selected completely at random. As a result, HMRC sometimes picks the wrong targets. Even if you have done nothing wrong, the taxman will still review your records for errors. 

The questions asked by HMRC are usually very detailed and time consuming to answer. The costs of defending your case can easily run into thousands of pounds in professional services, even if little or no extra tax is due at the end of the enquiry. These costs are not covered by the normal annual fees paid to your accountant. 

You can subscribe to the tax investigation insurance service which will cover you for the work and cost of defending you in the event of a tax enquiry by HMRC. 

It is a service set up by M Wasley Chapman & Co to protect clients from HMRC queries. For a small fee, clients can subscribe to the service and obtain the benefits described below. The service is backed by an insurance policy that the practice has arranged through Markel Tax. Under the policy, the practice can claim professional costs incurred defending clients in the event of a tax enquiry. 

  • M Wasley Chapman & Co will defend you should you receive any correspondence or a visit from HMRC
  • The potentially high costs of professional fees for that defence will be claimed under the practice’s insurance policy
  • It will not be necessary to accept unreasonable tax charges by HMRC due to concerns about professional fees

You will be fully protected by the service and the practice will claim under an insurance policy which provides cover up to £75,000 of professional costs in the following circumstances:

  • Dealing with any correspondence form HMRC
  • Attendance at any meeting with HMRC
  • Appeal to the First-tier Tribunal or Upper Tribunal

Some costs will not be covered under the service, including the following:

  • Routine compliance work, e.g. preparing your tax return
  • Overseeing HMRC whilst they review your records
  • Outstanding taxes, penalties, interest or any other amounts due to HMRC
  • Defence of criminal prosecution cases or serious fraud enquires
  • Fees relating to pre-existing enquires 

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