HMRC compliance checks, tax enquiries, and investigations are increasingly common. Learn how our Tax Fee Protection service can help your business respond effectively and protect against unexpected professional fees.
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.
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.
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.
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.
To find your nearest office or get in touch with one of our specialist advisors to see how we can help your business, please go to our contact us page.
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