HM Revenue & Customs (HMRC) has continued to increase its compliance checks and investigation procedures, as it seeks to tackle tax avoidance and recover costs from the pandemic.

Having accrued substantial national costs during COVID-19, the UK Treasury is under increased pressure to close the tax gap, which is why many experts anticipate additional tax compliance campaigns in the near future.

In fact, in the Spring Statement, the Chancellor confirmed an additional £161 million of investment in the next five years to increase compliance and debt management capabilities at HMRC, which is forecast to bring in more than £3 billion of additional tax revenue.

Additionally, HMRC has continued, in recent months, to take action against a number of businesses found to have misused COVID financial support, with the Insolvency Service separately announcing that it has banned many directors for misusing loans and support schemes.

An investigation by HMRC can have a significant impact on a business and can, in some cases, take more than a decade to resolve.

Given the increased pressure on businesses and individual taxpayers regarding the COVID schemes and general tax compliance, it has never been more important to have tax investigation fee protection in place that meets the full costs of an enquiry.

HMRC is employing sophisticated software and is working with more organisations than ever before to uncover tax that it believes is due.

We hope you never need our advice in this area, but if you do, our tax investigation service will cover the defence costs if you are selected for an investigation.

Our tax team has lots of experience supporting clients during complex tax investigations, some of which have involved significant costs to settle successfully.

Without the right fee protection in place, you may not be able to access the support you need, when you need it, resulting in significant costs, potential fines and, often, a lot of anguish.

We offer a comprehensive tax investigation that provides coverage for fees incurred in representing you in the event of any compliance check, visit or investigation started by HMRC.

While we cannot stop HMRC from launching an enquiry, we can ensure that you start any investigation on an even footing with the tax authority if you subscribe to this service.

You may have already been notified of a renewal of your policy by us or received an email about subscribing to this service.

To ensure you are properly protected against all eventualities and to give yourself peace of mind, please contact us.