Our Partnerships
Markel
We partner with Markel to bring you peace of mind in the event of a tax investigation
Reach out to your advisor to discuss coverage for your business
Who are Markel?
The Business Hub
Along with your Tax Investigation Service subscription you’ll will also receive complimentary access to The Business Hub, Markel’s online business support platform.
Designed specifically for small and growing businesses, The Business Hub is a comprehensive online resource designed to help businesses confidently manage their day-to-day legal and compliance responsibilities. It provides instant access to a wide range of practical templates, contracts, policies, forms, and letter templates that cover every area of business operations, helping organisations save time while reducing legal risk.
Business Operations
Health & Safety
Dispute Resolution
Data Protection
Cybersecurity
Key benefits of the Business Hub
- 24/7 legal helpline with unlimited calls included
- Expert advice from qualified solicitors and barristers on business legal matters
- Comprehensive online resource library with contracts, policies, forms, and templates
- Employment law guidance to help manage workplace issues and HR compliance
- Health & safety support to help protect your business and employees
- Commercial guidance to assist with everyday business challenges
- Clear, practical advice in plain English, making complex legal issues easier to understand
Tax Investigations
Frequently Asked Questions About Tax Investigations.
What is a Tax Enquiry?
A tax enquiry is the formal process by which HMRC asks questions about a tax return or specific tax position. An enquiry may focus on a particular area, known as an aspect enquiry, or it may involve a full review of a tax return. During the enquiry, HMRC may request additional information, supporting documentation and explanations to verify that the correct amount of tax has been paid.
What is a Tax Investigation?
A tax investigation is a review conducted by HM Revenue & Customs (HMRC) to check that a taxpayer or business has correctly reported their income, expenses, profits and tax liabilities. Investigations can range from simple requests for information to detailed examinations of multiple tax returns, business records and financial transactions. HMRC can investigate individuals, sole traders, partnerships and limited companies
How long can an investigation last?
The length of a tax investigation varies depending on its complexity and the information required by HMRC. While straightforward enquiries may be resolved within a few months, more complex cases can continue for several years.
What is the difference between a tax investigation and a tax inquiry?
Although the terms are often used interchangeably, a tax enquiry and a tax investigation are not always the same thing.
A tax enquiry is typically a formal review by HMRC into a specific tax return or a particular aspect of that return. HMRC may ask questions, request documents, or seek clarification about certain figures or transactions. Enquiries can be limited to one area of concern (an aspect enquiry) or cover the entire tax return (a full enquiry).
A tax investigation is a broader term that covers all forms of HMRC compliance activity. This can include tax enquiries, VAT inspections, employer compliance reviews, IR35 investigations, information requests and other checks designed to verify that the correct amount of tax has been paid. Some investigations can be extensive and involve multiple tax years or taxes.
What triggers a tax investigation?
A tax investigation can be triggered by:
- inconsistencies in tax returns
- high expense claims
- significant changes in income or profits
- VAT discrepancies
- late filings
- information received from third parties.
HMRC also carries out random compliance checks, meaning businesses can be selected even when they have done nothing wrong.
HMRC is increasing its compliance activity through the recruitment of 5500 additional compliance officers and greater use of data analytics and AI to identify businesses for review. It also has access to information from multiple sources, including Companies House, banks, online marketplaces and can view public social media accounts to aid in this.
It is important to note, in light of its 10-year AI system contract with HMRC Connect, that AI can misinterpret data and hallucinate. Therefore, there is an increased possibility that legitimate businesses may be selected for investigation despite having fully complied with their tax obligations, making the tax investigation service all the more important.
How much can an investigation cost me?
The cost of professional representation during a tax investigation can vary significantly depending on the nature and duration of the enquiry.
We’ve seen fees range from thousands of pounds, to tens of thousands of pounds, with a recent client saving £14,000 in fees using the Markel Tax Investigation Service.
Working with the best accounting software...
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