Insurance against the cost of an HMRC enquiry, starting at £75 per year.*
Investigations can happen to anyone – whether you’re a freelancer, running a business, or a professional who is required to submit a self-assessment tax return.
HMRC launch hundreds of thousands of tax investigations every year. No matter how good your records are and even if you’ve done nothing wrong, you can still be subject to an in-depth enquiry.
You can’t predict when you might be targeted, but you can take positive action by protecting yourself with Tax Defence.
Markel’s Tax Defence specialists will stand shoulder-to-shoulder with you to achieve the best possible outcome if HMRC decides to investigate you.
* Price quoted is based on a manufacturing business with an annual turnover below £100,000 and one employee, requiring professional expenses insurance cover only. The annual premium of £75.00 is the equivalent of less than 21p per day or £6.25 per month. Data correct as of 1 Nov 2024.
We're here to protect you
Tax and VAT regulations can be complex, and HMRC's investigations are often unpredictable. Tax Defence will enable you to:
- Face HMRC on an equal footing
- Work with a specialist provider with over 25 years’ experience dealing with HMRC enquiries for thousands of taxpayers.
- Have former-HMRC experts on your side
- Rest easy knowing you are protected
Would you know what to do if HMRC targeted you?
HMRC are using ever more sophisticated data, statistics and AI technology to target taxpayers.
Investigations are becoming more complex, persistent and intrusive.
Many freelancers, professionals and small businesses are unprepared for enquiries. Even if you’ve made no mistakes, you may be faced with an in-depth and time-consuming review. That leaves you:
- Distracted from your day to day
- At risk of large professional costs
- Defending yourself against HMRC’s technical expertise
- Facing uncertain outcomes
Tax Defence: Experts at your side
Did you know, the typical enquiry lasts 18 months?
In extreme cases, enquiries have been known to last over five years - resulting in tens of thousands of pounds in professional fees.
In addition to the financial burden of an investigation, taxpayers face stress and uncertainty, significantly impacting both their business and personal lives.
Investing in Tax Defence means Markel’s investigation experts are on your side. Our specialist cover and the expertise of our team mean you’re supported through every stage of an HMRC investigation.
We work tirelessly to achieve a fair outcome for you.
Get a fast, easy online quote now.
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Need more information?
Full coverage details
Who do we help?
Anyone who submits a tax return can be subject to a random investigation:
- Landlords: Residential and buy-to-let landlords, holiday lets (e.g. Airbnb), etc.
- eCommerce: Online traders, sellers and makers (e.g. eBay, Vinted, Etsy, etc.).
- Freelancers: Anyone who’s required to submit a tax return.
- High-net-worth individuals
- SMEs
Tax Defence provides peace of mind, financial protection against professional fees, and access to expert guidance during a stressful and potentially costly investigation.
Navigate everyday legal issues with ease
You are an expert in your field, but the intricacies of employment law, health & safety and commercial issues can be a minefield for small business owners.
With Tax Defence, you can benefit from optional expert legal advice with your policy.
Markel UK’s 24/7 legal helpline allows businesses to access over 40 qualified solicitors who can assist with everyday legal issues. Our experts handle over 250,000 enquiries a year to help businesses run smoothly.
With Markel’s legal helpline, a legal expert is only a phone call away.
Get legal advice that is:
- In plain English
- 24/7, 365 days a year
- Unlimited
Frequently asked questions
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What is a tax investigation?
HMRC can select any taxpayer at random and the risk of being selected will depend upon your individual circumstances. These investigations will range from a simple request for information right through to an investigation into all your business and personal finances.
HMRC can impose penalties for inaccuracies where additional tax is due. The severity of any penalty depends on whether the discrepancy was deemed careless or deliberate.
Investigations are, by their nature, intrusive, expensive and can last months - or even for many years.
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I fill in my own self-assessment return – can I protect myself with Tax Defence?
Yes, anyone who is required to fill in a self-assessment tax return can purchase Tax Defence.
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Why might I be investigated? And what will that mean for me?
HMRC takes a risk-based approach, using data and analytics to identify discrepancies. Random checks can also occur, making it crucial for taxpayers to maintain accurate records. Discrepancies in tax returns, large fluctuations in income, and information received from third parties, such as online platforms and payment processors, can trigger an investigation.
HMRC may request a wide range of documents, including bank statements, invoices, receipts, and expense records. Having comprehensive and organised records helps you to protect yourself in case of an investigation.
For more details, refer to Gov.uk.
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I don’t operate/sell/trade online – does this mean I’m less at risk of enquiry?
Unfortunately not. HMRC also gathers data from banks and payment processors (by credit/debit card). So, whether you have a part-time business, childmind or even run a stall at the local farmers’ market, any transactions can be investigated
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I only sell a few bits on eBay/Vinted, am I at risk of being investigated?
This kind of situation can be tricky to navigate. If you are just selling some unwanted items that have been lying around your home - such as the contents of a loft or garage - it is unlikely that you will have to pay tax.
If you buy goods for resale or make goods with the intention of selling them for a profit, then you are more likely to be trading and may have to pay tax on your profits.
However, if your total income from trading or providing services online was less than £1,000 (before deducting expenses) in any tax year, you would not be required to inform HMRC nor pay any tax on the profits (this is due to the Trading and Miscellaneous Income Allowance).
Source: Selling online and paying taxes - information sheet - GOV.UK (www.gov.uk)
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I rent out my spare room/a holiday home on Airbnb. Am I at risk of being investigated?
HMRC may target holiday rental owners if there are discrepancies in declared income, especially if rental income is not reported accurately. This includes income from platforms like Airbnb. Regular audits and cross-referencing with third-party data can flag inconsistencies.
This means that if you are investigated you could be subject to additional liability and penalties for a number of years.
Having tax investigation insurance with Markel Tax will cover the costs of professional fees during an investigation, providing peace of mind and financial protection*.
*Please refer to IPID for full information
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What trades and professions can buy tax investigations insurance?
Any trade or profession can benefit from Tax Defence. Whether you are in business or are an individual - so long as you file a tax return, you are at risk. Typical businesses and kinds of people that benefit from Tax Defence include:
- Manufacturers
- Retail businesses
- On-line sellers
- Restaurant/takeaways
- Taxi drivers
- Healthcare providers
- Publicans
- Construction businesses
- Farming businesses
- Arts/entertainment providers
- Professionals
- High-net-worth individuals
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What information do I need to get a quote?
We’ll guide you through the quote process. Here are some of the key details about your activities and income that we’ll need to know:
- What type of business you are (Company, Partnership or Sole Trader)
- Your last declared business turnover
- What personal income you declared on your last Tax Return
- What profession or trade are you in
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Why do you need to know my turnover?
Your turnover will affect the risk profile and possible complexity of an HMRC enquiry. If you have not previously submitted a tax return, you should use your projected turnover for the coming 12-month period. You should include income from all sources, including rental income, proceeds of any capital gains, any overseas income and other investment income.
Although overseas income is used to determine your turnover band, please note that the Policy will not provide cover for any tax enquiry conducted outside of the UK by an overseas tax authority into the overseas income.
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How do I make a claim?
Making a claim is simple - our dedicated claims team are on hand to guide you through every step of the process.
If you receive an enquiry notice from HMRC, contact us as soon as possible. This will ensure we can open your claims and make sure our experts can be on your side and supporting you from day one.
You can call our dedicated claims team 9:00 to 5:00pm, Monday to Friday on 0370 166 6271 or email us at taxclaimsuk@markel.com.
If you have any questions, or need assistance in completing your quote, don't hesitate to call us on 0333 321 1788 between 9.00am and 5.00pm Monday to Friday.