When HMRC opens an enquiry into your accounts or tax returns, it can trigger weeks if not months of stress, admin, and unexpected costs. That’s where investigation insurance becomes essential.
Investigation insurance covers the professional fees involved when HMRC decides to investigate your business. Whether it’s a full enquiry, a VAT check, or questions around payroll or director loans, this cover ensures you’re not left footing a significant bill just for defending your position even when you’ve done everything right.
What does investigation insurance cover?
Tax investigations can happen to any business. Having investigation insurance through striveX® means we can handle the enquiry from start to finish without additional charges. Here’s what’s typically covered:
- Accountant’s fees related to responding to HMRC
- VAT and PAYE investigations
- IR35 and employment status checks
- Director loan account queries
- Corporation tax or personal tax enquiries
The policy doesn’t cover tax liabilities themselves, but it gives peace of mind that your defence won’t drain your cash flow.
@accountant_she HMRC have the right to check your personal and business records at any time, to make sure you're paying the right amount of taxes across different areas of your business and personal affairs. There are lots of different triggers for HMRC investigations. HMRC state that investigations are usually triggered when figures are filed that appear to be incorrect or suspicious in some way. However, there are some extra reasons that can mean that your business might be the target of an investigation: 💸 HMRC receives a tip-off 💸 You work in a high-risk industry, for example one that routinely takes cash payments 💸 You have a large fall in income, increase in costs or there are inconsistencies between different returns 💸 You file your returns consistently late 💸 Your costs are above the industry norm 💸 Your tax returns are inconsistent with your standard of living 💸 You are in a sector that HMRC has decided to target HMRC can enquire to look at one or more elements of your business, the 6 most common things they'll be looking at are: 💀 your corporation tax records, filings & tax paid if you're a limited company 💀 your self-assessment accounts and tax calculations if you're a sole trader 💀 your self-assessment tax return for one specific year 💀 your PAYE records, filings & tax paid if you're an employer 💀 your VAT records, filings & tax paid if you're VAT registered 💀 your CIS records, filings & tax paid if you're part of the construction industry If you do get notified that you're being investigated by HMRC, the three things you should do straight away are: check that the correspondence, is from HMRC and isn't part of a scam make a claim against your HMRC investigation insurance, if you have it call your accountant #business #hmrc #investigation #tax #uktax #taxtips ♬ original sound - Rachel @accountant_she
Why is this relevant now?
HMRC’s use of AI and data-matching tools has dramatically increased the volume of investigations, even when no wrongdoing has occurred. As more businesses go digital, small discrepancies or timing issues can trigger a full review.
Having investigation insurance in place isn’t just about protection, it’s about preparation.
Work with Strivex today
At striveX®, we specialise in helping UK limited companies manage their finances with confidence. Whether you need advice on how to grow your business or support with company accounts, our experienced team is here to assist.
How we support you at striveX®
If you’re a limited company client at striveX®, we offer investigation insurance as part of your support package or as an add-on. We manage the whole process on your behalf, keeping your stress levels low and your compliance on track.
Why choose investigation insurance through striveX®?
With digital record-keeping now the norm, even small discrepancies can trigger costly enquiries. That’s why striveX® offers investigation insurance as part of our commitment to proactive, protective accounting. We manage the entire process on your behalf, so you’re not left dealing with stress, admin, or unexpected fees. Whether you’re scaling quickly or simply want peace of mind, our expert team ensures your business stays protected and prepared. Get in touch to learn more about adding investigation insurance to your support package.
Frequently asked questions
Does investigation insurance cover the tax bill?
No, it covers the professional fees for your accountant or advisor to respond to HMRC, not any tax owed.
Can any business get investigation insurance?
Yes, but at striveX® we specialise in offering it to limited companies with £100k+ turnover who want proactive protection.
Is investigation insurance included in my accounting package?
For most clients, yes. Investigation insurance is either included as standard or available as a low-cost add-on.
Checkout more resources here
Looking for expert guidance on managing your business finances?
Explore our full range of courses, packed with practical advice and actionable insights to help you stay compliant and in control.
