An enquiry by HMRC can be a serious disruption and may take a long time to resolve.

Even if you are happy that your accounting records are sound and your tax affairs are all in order, this does not mean that you will not be selected for enquiry.

It is not unknown for businesses to feel pressurised into a tax settlement simply due to the level of professional fees incurred in dealing with the enquiry.

The primary benefit to fee protection insurance is that it provides cover for conducting all the work necessary in negotiating a settlement with HMRC should a client be unfortunate enough to receive either a “full” or an “aspect” enquiry.

Our Scheme is arranged through market leaders CCH Fee Protection.  Having researched the market we believe the benefits the scheme provides is most suited to the demands and needs of our clients.

A further benefit of the scheme is that business clients will also have access to one of the UK’s premier Business Support Helplines which could save a great deal of time and money by providing guidance in the areas of Enquiry Law, Employment Law, Landlord and Tenant and Health and Safety.  All of this is provided at no extra cost and is included in the annual premium.

For further information please visit the CCH Fee Protection or Tax Investigations  page of our website or contact Steve Vickers on T: 0114 251 8850 or email: steve.vickers@hartshaw.co.uk.


2 Responses to “CCH Fee Protection Insurance”


  1. August 19, 2010 at 10:28 am

    Fee Protection Insurance – an un-neccessary expense?

    In the current economic climate, many businesses are paying closer attention to profit margins and managing cash flow. Overhead costs also come under scrutiny – this is typically the time to shop around for cheaper suppliers and to cut expenditure on unnecessary items.

    Is Fee Protection Insurance a luxury you can do without or is it a necessary cost to protect your business from a potential HMRC enquiry? After all, what are the chances of HMRC opening an enquiry into their tax affairs?

    One thing is certain – HMRC enquiries are on the increase.

    Our own insurance provider, CCH Fee Protection, have confirmed that they have experienced a 60% increase in claims in December 2009 compared with December 2008 which is due to an increase in HMRC enquiries.

    Similar reports are being made by other insurance companies. The claims department at Abbey Tax have reported that the claims received in June 2010 had doubled from the figure in June 2009.

    One possible explanation for the increase is that during the early part of 2009 it was felt that the number of enquiries was low because of internal reorganisations within HMRC and staff undertaking training on new powers and procedures in relation to “Cross Tax Enquiries”.

    The current trend of an increase in HMRC enquiries is expected to continue given the state of the UK economy as reported in the Emergency Budget.

    In recent weeks we have been made aware of a new HMRC initiative, which we understand is known as the “Dash for Cash”. We have been advised that Inspectors are being tasked to collect as much tax as quickly as possible, which is not surprising in the current economic climate. This will result in the closure of long-running full enquiry cases and an increase in “aspect” enquiry cases which are more efficient in terms of cost / tax yield.
    In light of the above, do you still consider fee protection unnecessary?

    The reasons given by clients for not taking out fee protection insurance often include the fact that their accounting records are all in order, they have nothing to hide and they also employ a well-respected, professional firm of chartered accountants to manage their tax affairs on their behalf.

    Unfortunately, it is not just the disorganised and dishonest that fall victim to an enquiry. In theory, every business has an equal chance of being selected for enquiry. The truth of the matter is that a HMRC enquiry could cost an uninsured business thousands of pounds in professional fees despite the fact no additional tax is payable as a result.

    In conclusion, we recommend fee protection cover to all our clients even though we hope that they never need to make a claim – after all why do you take motor car or house contents insurance?

    For further information on Fee Protection Insurance you can speak to Adrian Dunkley on T: 0114 251 8850, email: adrian.dunkley@hartshaw.co.uk or visit our website at http://www.hartshaw.co.uk/fee_protection.htm.

  2. October 20, 2010 at 9:04 am

    TAX INVESTIGATIONS TO INCREASE BY 3000% ACCORDING TO NEW GOVERNMENT FIGURES

    Recent press reports have stated that the government is pursuing a “£900 million drive” that will see the number of people targeted for tax investigations rise from 5,000 to 150,000.

    It is estimated that “half of all people paying the 50p top rate of tax will have their tax affairs raked over by a dedicated team of investigators” in the announced crack-down to ensure that people’s tax affairs are in order.

    It is becoming increasingly important to ensure you have the right cover in place should you be unfortunate enough to receive either an ‘aspect’ or ‘full’ enquiry from HMRC.

    The primary benefit of our fee protection insurance is that it pays for us to conduct all the work necessary in negotiating a settlement with HMRC on your behalf.

    Adrian Dunkley, Tax Manager
    T: 0114 251 8850
    Email: adrian.dunkley@hartshaw.co.uk


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