Any business or individual submitting a tax return or accounts to HMRC could be selected for a tax enquiry or compliance check. These reviews can be detailed and time-consuming, even if no additional tax is due. The costs of responding, preparing records, and defending your business can be substantial.

What is an HMRC compliance check or tax enquiry?

An HMRC compliance check (sometimes called a tax enquiry or tax investigation) is a review of one or more taxes, such as corporation tax, VAT, PAYE, or CIS. HMRC may request supporting documents, explanations, and records to ensure the correct amount of tax has been paid.

A compliance check does not imply wrongdoing, but handling it carefully is essential to minimise disruption and cost. 

Common triggers for HMRC compliance checks

HMRC uses data analysis and risk profiling to select businesses for review. Some common triggers include:

  • Dividends that appear high relative to profits

  • VAT returns that do not match accounts or industry norms

  • PAYE or CIS indicators suggesting employment status issues

  • Large or unusual relief claims, including R&D or capital allowances

Checks may cover a single issue or multiple areas of your tax return.

Tax Fee Protection Insurance - how we can help

Being prepared in advance can save both time and money – and provide peace of mind if HMRC contact does occur. Our Tax Fee Protection insurance service protects businesses against the professional fees incurred when HMRC carries out a tax enquiry, compliance check or inspection.

This service covers the costs of defending you in most HMRC reviews, including:

  • Corporation Tax and Income Tax full or aspect enquiries

  • PAYE/NIC compliance checks

  • IR35, Employment Status and CIS enquiries or disputes

  • VAT compliance checks

  • Business record checks, inspections, and interventions under HMRC's Schedule 36 powers

  • Inheritance Tax / Probate enquiries

  • Stamp Duty and Stamp Duty Land Tax enquiries

  • National Minimum / Living Wage enquiries

  • Child Tax Credit and Student Loan enquiries

  • Gift Aid enquiries

  • Companies House confirmation statement enquiries

  • Enquiries into Scottish taxes

Additional benefits include complementary telephone access to employment, health & safety and general legal advisors.

Why subscribe to Tax Fee Protection

Our normal annual fees do not cover the additional costs of handling HMRC enquiries or compliance checks. By subscribing to our Tax Fee Protection insurance, you can protect your business (or yourself, if applicable) from potentially high professional fees.

Subscribing also ensures that any HMRC compliance check or tax enquiry is handled efficiently, professionally and with minimal disruption to you / your business. 

If you would like to subscribe to our Tax Fee Protection service or discuss how it can help, contact our team today. 

You can also download our Summary of Service for full details on what is included. 

Get in touch

Muhammed Shabbir

Muhammed Shabbir

Email Muhammed

024 7671 5111

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