When HMRC decides to open an enquiry, your accountant has to gather bank statements, financial records and other evidence, then negotiate on your behalf. That work is billed by the hour, and a typical enquiry can run for months. You pay one simple premium, and our cover pays for all of that, to protect you once a claim is accepted.

Specialist cover under a Vexo Accounting policy pays for:

• Correspondence and meetings with HMRC during a self assessment tax return enquiry, corporation tax enquiry or VAT check
• Preparing the financial records HMRC asks for, including expense records
• Professional representation at any meeting with an HMRC officer

What Our Tax Investigation Insurance Doesn't Cover

Tax investigation insurance does not cover any extra tax, interest or penalties HMRC decides you owe, only the professional fees in defending the enquiry, not the outcome. Late submissions are typically ineligible, along with any enquiry that was already the subject of correspondence before your policy began.

The moment you forward us a letter from HMRC, we take over as your accountant. You get expert advice from day one, and our support covers the calls, paperwork and deadlines while you keep running your business.

You should never face HMRC alone when qualified support is one phone call away. Saying the wrong thing, or handing over more than needed, can extend the case or increase what you owe. Our team knows what HMRC can ask for, and we push back where needed.

Reasonable Care And Avoiding Penalties

HMRC can charge penalties on any extra tax if it decides you failed to take reasonable care, and most clients pay less for a year of cover than a single hour of an accountant's time. Good financial records are your best defence: they show HMRC how a figure was worked out, protect you from an unfair penalty, and head off problems before an enquiry starts.

Tax investigation cover is often an add-on when you sign up with an accountant, though we also arrange it as a standalone policy. We keep our cost simple: one annual premium, one number, no surprises.

Individual and sole trader cover generally starts from around £75 to £100 a year. A small business with one employee and an annual turnover under £100,000 can expect professional expenses insurance cover of £100 to £300 a year, and a limited company with more complex tax affairs or a higher turnover should budget £300 to £500, sometimes more.

Larger corporations, or those with international income, often pay upwards of £1,000 a year given the extra professional fees involved in a large business enquiry. This is a rough guide based on recent projects we have priced, and the actual cost varies by turnover, sector and the level of cover you choose. Your premium protects you against a bill that could reach thousands in professional fees, even for a routine enquiry.

Ask us for a personal quote, and we'll confirm your figure.

Around 5.3 million small businesses operate in the UK, making up roughly 93% of all UK businesses, so most of our clients fall into this group. Whether you run a construction business, a manufacturing business, a consultancy or a rental portfolio, an HMRC letter arrives the same way for everyone. The benefits of cover apply just as much to a one-person company as a larger employer, and these benefits give directors peace of mind at the same low cost.

Common Triggers We See Across Different Types Of Client

If you are a contractor working through a limited company, IR35 status checks are a common reason HMRC gets in touch. Landlords face questions about rental income and expense records. Directors of owner-managed companies are often asked to explain a director's loan account or a large expense claim. Our tax investigation insurance is built around all of these situations, and every company we cover gets the same level of support.

Keep financial records organised as you go; a well-kept paper trail is often the single biggest factor in how quickly an enquiry closes.