A business was investigated for almost two years after HMRC started a full review of the business records and looked into a number of technical matters, including the director’s loan account.

Additional tax payable was only £200. Fees to reach settlement exceeded £5,000.

Without tax investigations protection, the client would have settled sooner and paid a lot more tax.

This level of cost is common for a complex tax return investigation, due to the level of detail and correspondence the HM Revenue & Customs can request.

Tax investigations protection is just as important as protecting our business from unpredicted buildings, contents or car damage. The annual fee is small in comparison to the cost of an investigation so it is definitely worth having.”.