Protect Yourself Against Costly HMRC Enquiries with Our Tax Protection Service

Every year, HMRC conducts thousands of tax enquiries into individuals and businesses across the UK. These enquiries can be stressful, intrusive, time-consuming, and expensive—even when no additional tax is due. With the ongoing rollout of Making Tax Digital, HMRC has access to more taxpayer data than ever before, increasing the likelihood of investigations.

Who is at risk of a HMRC enquiry?

Every taxpayer who submits a tax return is at risk of an HMRC enquiry—without needing to have done anything wrong. Many investigations result in no additional tax liability, yet businesses and individuals still face significant accountancy fees to resolve these cases.

What happens during a tax enquiry?

For Businesses

HMRC has broad powers to inspect business records, request extensive documentation, and even conduct unannounced visits. Investigations can stretch back up to twenty years, scrutinising everything from VAT and PAYE compliance to employment status disputes like IR35.

In recent years, HMRC has targeted specific industries with routine VAT and PAYE checks that often escalate into full-scale investigations.

Case Study – Cross Tax Enquiry

An engineering company faced a “Cross Tax Enquiry” covering four years of corporation tax, VAT, and PAYE records.

It became evident very early on that HMRC was unsure exactly what they were looking for and were undergoing a fishing expedition. The questions asked were very detailed and seemingly endless and after one meeting alone, over 100 questions followed.

Despite the best efforts of the adviser, the enquiry dragged on for two and a half years, and although only minor adjustments were required, accountancy fees exceeded £35,000. But this was all covered by our Tax Protection Service.

For Individuals

Tax enquiries can range from simple checks on a single tax return entry to full-scale investigations into an individual’s personal finances. HMRC’s powerful ‘Connect’ database enables them to cross-check tax returns against third-party data, leading to more enquiries based on lifestyle and spending patterns.

Case Study: Incorrect HMRC Information

HMRC launched an enquiry against an individual, claiming they had undeclared income. However, they refused to disclose the source of their information. The investigation lasted three years, costing over £11,000 in professional fees. In the end, HMRC’s claims were incorrect—but all fees were fully covered by our Tax Protection Service.

How our Tax Protection Service can help you

Dealing with an HMRC enquiry is time-consuming and costly, but our Tax Protection Service ensures that you won’t have to bear the financial burden. Our service covers professional fees incurred during most HMRC investigations, giving you peace of mind and expert support without unexpected costs.

Many of our clients already benefit from this protection. If you haven’t yet subscribed, get in touch with your Client Manager, or fill in the form below.

On average, our costs per enquiry exceed £4,000, with some cases reaching nearly £45,000—all paid by our TPS provider.