Tax Fee Protection Service
Every year, HMRC start enquiries into thousands of personal and business tax returns and accounts. Anyone who submits a UK tax return could come under scrutiny.
Many clients only appreciate the true value of Tax Protection Service when they receive an unexpected letter from HMRC.
An HMRC enquiry can arise at any time, whether it relates to a personal tax return, VAT affairs, PAYE compliance, Corporation Tax, or other tax matters.
Even when a taxpayer has done everything correctly, responding to an enquiry can require significant professional time and expertise, and the associated cost run into thousands of pounds.
In partnership with a leading UK provider, we offer tax fee protection to eligible BKL clients. This insurance-backed service is designed to cover the majority of the costs of our professional fees in liaising with HMRC.
Having this cover has brought many clients peace of mind – and, for those clients who have been subject to an HMRC enquiry, a considerable reduction in what they would otherwise have to pay.
Protection When You Need It Most
For a standard annual fee, tax fee protection offers clients the reassurance of professional representation and support if and when HMRC decides to investigate their affairs.
Rather than worrying about mounting accountancy fees and lengthy correspondence with HMRC, clients simply forward the HMRC letter to us, and we take care of the matter on their behalf.
The result is straightforward:
- No unexpected professional fees,
- Expert handling of HMRC enquiries,
- Reduced stress and disruption,
- Complete peace of mind.
Our clients’ experience
One of our clients paid an annual Tax Protection fee of £270.
Subsequently, HMRC opened an enquiry which required lengthy professional correspondence to bring the matter to a happy conclusion. The total cost of the work involved exceeded £9,000.
Because the client was covered under our Tax Protection Service, these fees were claimed through the scheme. The client did not have to bear this substantial cost personally.
A typical HMRC investigation may require:
- Reviewing records and documentation.
- Preparing detailed responses.
- Corresponding with HMRC officers.
- Attending meetings and discussions.
- Managing follow-up requests and technical queries.
- Negotiating and bringing the enquiry to a conclusion.
Given the considerable cost, disruption and stress that we’ve seen resulting from HMRC enquiries, plus the randomised nature of these enquiries, we highly recommend our tax fee protection service to our clients.
Get in touch today if you’d like to subscribe or to find out more. Knowing that experienced professionals will handle HMRC enquiries on your behalf allows you to focus on running your business, managing your finances, and getting on with your life.
Case studies from our tax fee protection insurance provider
Tax enquiry
HMRC opened an enquiry into a tax return. The enquiry lasted two years, with various requests for information and data from the client.
Fees were requested at several points and were authorised to enable the client’s accountant to continue dealing with the enquiry on their behalf.
The enquiry was concluded with no amendments being made to the return. Total fees on this claim amounted to £19,000, which were paid in full.
Construction Industry Scheme enquiry
An enquiry was opened into a scaffolding company’s CIS payments. The enquiry lasted for six months and resulted in the client receiving a refund from HMRC.
The total fees for the client’s accountant to defend this enquiry were £2,400 which were paid in full.
VAT enquiry
A VAT inspection was arranged with the client at their premises. Fees were authorised to allow the client’s accountant to attend the meeting.
During the inspection, HMRC raised a concern about the client’s data storage systems. Following the visit, improvements were recommended to the client.
The enquiry was closed. All fees were paid for the visit and subsequent letters that their accountant had to send to HMRC. The fees totalled £3,400, which included travel time to the meeting and mileage costs. This was paid in full.was closed. All fees were
paid for the visit and subsequent letters that their accountant had to send to HMRC. The fees totalled £3,400, which included travel time to the meeting and mileage costs. This was paid in full.
Nudge letters
HMRC issue nudge letters to give taxpayers the opportunity to reassess the provided information before a formal enquiry is opened.
Although not a full investigation, they do still require your attention.
The time taken by accountants to respond to nudge letters can be costly.
One client received a nudge letter about property disposal assets. Whilst there were no amendments required by HMRC, the cost associated with responding was nearly £1,000.
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Frequently asked questions: Tax Fee Protection Service
What is an HMRC investigation?
£46.8 billion (5.3% of total theoretical tax liabilities) is the latest estimated tax gap between what HMRC should collect and what it does collect. This gap has grown from £35.8 billion (4.8% of total theoretical tax liabilities) in the 2021/22 tax year.
To ensure tax compliance and to close this gap, HMRC undertake tax and VAT investigations.
Why would I be investigated?
Possible reasons include: filing a late return, errors that require correction, dealing with cash, HMRC receiving a tip off, or working in a targeted business sector.HMRC’s Connect database collates data from banks, Land Registry records,
Visa and Mastercard transactions, DVLA, council tax, VAT registration documents, Airbnb, and social media profiles.
A common misconception is that a mistake has been made. Often that isn’t the case. Random enquiries can and do happen.
How much does an enquiry cost?
Representing you can easily run into thousands of pounds but will vary from enquiry to enquiry, even if your return is correct and no further tax is due. Immediate professional representation is essential for successfully and quickly dealing with HMRC enquiries, the cost of which is not included as part of your annual fees.
What does BKL’s tax investigation service cover?
The BKL Tax Fee Protection service covers you in respect of fees up to £100,000 incurred representing you in the event of any compliance check, visit or investigation started by HMRC regarding compliance with:
- Corporation tax self-assessment
- National Insurance
- Income tax self-assessment
- Construction Industry Scheme
- National Minimum Wage
- IR35
- Gift Aid legislation and regulations
- Capital gains tax
- Inheritance tax
- Stamp duty (including land tax)
- VAT
- PAYE and P11D
Where applicable this service extends to include your directors, partners and company secretary subject to external income limits.
What does the service not cover?
- Fraud
- Criminal prosecutions
- Tax avoidance schemes
- Deliberate omissions
- Tax, fines, penalties & interest due
- Enquiries commencing outside of the Period of Service
The BKL Tax Fee Protection service is not an insurance product, but is underwritten by our partner, Croner-I.
Full details of the underlying insurance policy can be found here.
Do you have experts in resolving tax disputes?
Our tax risk & dispute resolution team are highly experienced in dealing with HMRC on behalf of individuals, families and businesses. We apply a detailed understanding of HMRC’s approach to risk, enquiry processes and decision-making governance.
We’re experienced in understanding the underlying risks HMRC are trying to address, narrowing the scope of enquiries and progressing matters to conclusion as quickly as possible.
Find out more about our tax risk & dispute resolution services.
What are the policy details?
- UNDERWRITERS POLICY NUMBER TXWS6491-2026-1
- PERIOD OF SERVICE 01 July 2026 to 30 June 2027
How do I make a claim?
In the event of any correspondence or communication from HMRC relating to a potential enquiry or dispute, please speak to us straight away and get immediate professional advice. We will make a claim against our policy and credit the proceeds against your liability for fees. You could be liable for any fees not covered by the policy.
