HMRC have issued their 2005/06 report and figures show there was an overall increase in the income from tax compliance work of 27% compared with the previous year.  The tax found from Corporation Tax enquiries was up 19%, from partnership & sole trader full Enquiries up 14% and from PAYE disputes up by 20%. Aspect enquiries produced 24% additional tax from company enquiries and 12% from sole traders and partnerships. There was also an increase of 8% from personal investigations. The message is once they�ve got you in their sights, HMRC won�t stop until they�ve wrung out the last penny in tax!

There is clear evidence of the Revenue�s tenacity over the last few years where HMRC have exceeded the targets they set for each type of enquiry and the yield is clearly rising. The length and therefore the cost of enquiry is increasing across the board.  We could potentially see more enquiries heading for the Commissioners as a result. HMRC still regard status as a big issue, you only have to look at the Pre-Budget Report and their approach to the Construction Industry to see that they mean business.

PCG Professional Expenses (Tax Investigations) Insurance policy
The policy has been designed for us by specialist brokers. It provides PCG members with a quality product and a quality service at an affordable price. The brokers hope to be able to build a wider range of cover in future, for example contract disputes cover, and aim at building a solid foundation to which building blocks, in the form of additional cover / benefits, can be added.

The policy is in the name of PCG and covers all PCG members. The cost is based on the number of members during the policy year and is extremely competitive compared to equivalent schemes in other organisations. The tax advisory support is provided by a firm of specialist tax advisers, Abbey Tax.

Insured
Members of the PCG (as defined by PCG), including new members joining during the Period of Insurance

Limit of Indemnity
�75,000 any one claim per insured/member

Please note, Insurance cover has been widened with effect from 1st Jan 2007. In addition to the existing Full Enquiry Cover in respect of Income Tax Self Assessment (the heading under which personal tax falls), an Aspect Enquiry dealing with business related enquiries into your personal return such as Expenses Claims will also be covered.  There is an excess of �150 and an Upper Limit of Indemnity of �1,500

Cover
Tax protection

Other benefits
A tax helpline provided by the scheme's tax advisers, Abbey Tax.

Claim form
Click here to download Abbey Tax Protection claim form
(for PEI, PAYE Audit Cover, jury service expenses cover)

Tax investigation FAQ