Spotlight Premiere Plan Members Tax Investigation Professional Fees Cover
Tax Investigation Professional Fees Cover is only applicable to Premiere members who are UK tax payers – England, Scotland, Wales and Northern Island.
Introduction
All eligible members of Spotlight’s Premiere Plan are insured for professional fees in handling certain investigations by HMRC into a member’s performing related occupation.
Demands and needs
This policy meets the demands and needs of Spotlight Premiere Plan members wishing to protect themselves against the cost of necessary professional fees following an investigation covered by this policy.
Name of the insurer
This policy is underwritten by Markel International Insurance Company Limited. Hencilla Canworth GI Ltd manages this policy on behalf of Spotlight.
Contact, Claims and Queries
Claims must be notified as soon as possible during the current period of insurance. Markel email is taxclaimsuk@markel.com or call 0370 166 6271 about a claim or cover query. Please quote Scheme number 23/09/5169/M and your name and address. You can also contact Hencilla at email spotlight@hencilla.co.uk or tel 0208 686 5050.
Eligibility
All subscription paying members of Spotlight’s Premiere Plan permanently residing in England, Scotland, Wales and Northern Ireland are covered.
Duration of insurance
The policy runs for 12 months from 4th September and is annually renewable by Spotlight. You must remain a member of Spotlight’s Premiere Plan to be insured.
Limits of Liability
- Maximum liability in respect of Any One Claim or in the Period of Insurance is £125,000.00.
- The lower limit relating to Code of Practice 8 enquiries (covered incident (9)) is £5,000.00
- The lower limit relating to Inheritance Tax enquiries (covered incident (11)) is £5,000.00
- The lower limit relating to Gift aid enquiries (covered incident (12)) is £5,000.00
- The lower relating to Stamp Duty and Land Tax
What is covered?
Insurers will appoint a Tax Investigation Specialist and pay agreed professional expenses up to the limits above. The investigation must be based in the UK and first made and reported to Insurers within the period of insurance.
Business self-assessment full enquiry
- a) A full enquiry by HMRC into your self-assessment Return following the issue of a Notice under S9A or S12AC of the Taxes Management Act 1970, or b) A Paragraph 24(1) Schedule 18 Finance Act 1998 investigation into your affairs together with a request to examine all of your business books and records.
Personal self-assessment full enquiry
A full enquiry by HMRC into your self- assessment return following the issue of a Notice under S9A of the Taxes Management Act 1970 into your non-business tax affairs. A full enquiry will be accompanied by a request to examine all the prime documents. An example of non-business tax affairs is rental income or interest received.
Corporation tax self-assessment aspect enquiry
An enquiry by HMRC into one or more specific aspects of your self-assessment return following the issue of a Notice under Paragraph 24(1) Schedule 18 Finance Act 1998.
Income tax self-assessment aspect enquiry
An enquiry by HMRC into one or more specific aspects of your self-assessment return following the issue of a Notice under S9A or 12AC of the Taxes Management Act 1970.
Employer compliance dispute
A dispute after HMRC have indicated an expression of dissatisfaction with your PAYE, CIS, and/or NIC affairs following an Employer Compliance visit by HMRC or following an expression of dissatisfaction with your P11Ds or P9Ds.
IR35 dispute
A challenge by HMRC regarding the status of a contract for services which invokes the IR35 legislation following either (a) the issue of a Notice under Paragraph 24(1) Schedule 18 of the Finance Act 1998; or (b) an HMRC Employer Compliance visit; or (c) the issue of a ‘Check of Employer Records Letter’.
VAT dispute
A dispute into your VAT affairs following HMRC issuing either a written decision, assessment or statement of alleged arrears, or the receipt of a notice of VAT default surcharge, misdeclaration or late registration penalty provided that this takes place within the United Kingdom and is first made and reported to Insurers during the period of insurance.
Schedule 36 pre dispute
A written request by HMRC under Sch36 FA200 to inspect your business records, assets or premises or requesting particulars, including inspections undertaken to ensure compliance with VAT and PAYE regulations inspections undertaken in relation to the operation of the Construction Industry Scheme. In the case of a personal taxpayer a request for the production of documentation to check your Income Tax position.
Code of practice 8 enquiries
A HMRC enquiry into your affairs commenced under S9A or 12AC of TMA 1970 or Paragraph 24 (1) Schedule 18 FA 1998 accompanied by and conducted under HMRC’s Code of Practice 8 procedures provided that this takes place within the United Kingdom and is first made and reported to Insurers during the period of insurance. Insurers will only pay if at conclusion of the enquiry no material omissions were identified, or you not found guilty of fraud or of any fraudulent intent.
National minimum wage pre dispute
A written request by HMRC to inspect or check your business records, including inspections undertaken to ensure compliance with the National Minimum Wage Act requests for documents and particulars prior to the issue of an assessment of arrears or notice of underpayment.
Inheritance tax
An enquiry by HMRC into your Inheritance Tax Returns submitted to Capital Taxes Office, including matters relating to the periodic and proportionate charges applying to trusts returns in respect of Estates of Deceased Persons provided you hold a Probate License and submitted the IHT Return.
Gift aid
An audit by HMRC into a claims made under the gift aid scheme when they are a Charity and/or a Community Amateur Sports Club. The audit must be first made and reported to Insurers during the period of insurance and must take place within the United Kingdom.
HMRC Amendments
You receiving a written notification from HMRC of their intention to amend your tax return under S9ZB TMA 1970 provided that this takes place within the United Kingdom and is first made and reported to Insurers during the period of insurance.
Stamp duty land tax
An enquiry by HMRC into Land or Property transaction Returns submitted by you and declaring a liability to stamp duty land tax, land and buildings transactional tax, land transaction tax.
General Conditions
Insurers will not pay you if the Return was submitted after the statutory deadline for submission.
Under all sections of cover Insurers will only pay you if you submitted your most recent Self-Assessment Return regardless of whether this is the return which is subject to Enquiry. If you did not submit your most recent return then Insurers will only pay you if you have provided them with satisfactory documentary evidence that you were covered by this scheme before the HMRC Enquiry or Dispute commenced, and the return was submitted by an accountancy practice
Notification of claims
You must notify Insurers in writing as soon as possible in respect of all claims or requests for payment for any investigation or enquiry.
Your notification must be within the period of insurance shown in the policy schedule. Any subsequent investigation or enquiry arising from the same originating cause will be regarded as having been made, instigated or requested during the period of insurance shown in the policy schedule and will be treated as a continuation of the existing claim rather than a new claim.
General claims handling
(a) you must give Insurers the information and co-operation that they may reasonably request (b) you must not do anything which might prejudice a claim (c) you must take all reasonable steps to prevent any further claim, investigation, enquiry or request for payment under this policy (d) you must comply with Insurers recommendations or the recommendations of their consultancy specialist as directed
(e) you must take all reasonable and practicable measures to avoid or reduce costs. If you fail to do this your claim may not be covered or the amount Insurers pay you may be reduced.
Claims procedure
If the required course of action is not followed your claim may not be covered or the amount we pay you may be reduced.
What is not covered (exclusions)
Other insurance
Insurers will not pay you where you have a right to payment of professional expenses under any other insurance.
Pre-existing events
Insurers will not pay you for any
- professional expenses incurred, or
(b) enquiries, investigations, audits or circumstances which you knew or ought to have known about prior to the date that
(a) this policy started, or
(b) you became a member of your professional expenses insurance scheme
Hourly charges rates
Insurers will not pay for professional expenses incurred in excess of the hourly rate agreed by them.
Fraud
Insurers will not pay (a) where an enquiry is conducted under Public Notice 160, or (b) where an enquiry is conducted under Section 60 of the VAT Act 1994, or (c) where an enquiry is a Code of Practice 9 case or (d) for the defence of any tax prosecution or criminal prosecution (e) where an enquiry is handled by HMRC Specialist Investigations, Fraud Investigation Service, Civil Investigations of Fraud, Counter Avoidance and Criminal Investigations Sections, irrespective of the outcome of those enquiries .
Late submission
Insurers will not pay you for any claim where (a) Income Tax, Corporation Tax, VAT or IHT returns are submitted more than 90 days after the statutory time limits. However, we will pay you if HMRC accept that a reasonable excuse existed for the delay, or (b)the client has not notified chargeability to tax or registered for VAT within the statutory time limits for doing so, or (c) a return is submitted at the final filing date which contains provisional figures in respect of all of the trading income and expenditure.
Tax planning
Insurers will not pay your Professional expenses in respect of (a) any HMRC Enquiry into a tax planning arrangement where HMRC has allocated a Disclosure of Tax Avoidance Scheme (Do TAS) Number for inclusion on the relevant Self Assessment Return or where a Do TAS Number would have been issued but for the failure to notify HMRC of the tax planning arrangement, or (b) any matter relating to bespoke tax planning outside of a client’s normal trade such as film partnerships or film schemes, or planning involving artificially created losses or loan arrangements, or (c) cases referred to the General Anti-Abuse Rules panel.
Voluntary disclosure
Insurers will not pay you where an investigation arises out of a voluntary disclosure made to HMRC in respect of omitted tax, NIC or VAT liabilities which become due as a result of you deliberately misleading HMRC Insurers will not pay you following an HMRC campaign where you have made an incorrect return to HMRC.
Business records
Insurers will not pay your professional expenses incurred in reviewing and/or collating a client’s business records in advance of a PAYE and/or VAT review undertaken by HMRC. Insurers will not pay the cost of preparing and reconciling returns, accounts, records or any other statutory returns, or the cost of professional valuations to support them. This includes the reconciliation of VAT Returns to accounts, Construction Industry Scheme (CIS) Returns, Real Time Information (RTI) payment submissions
Insurers will not pay third party fees unless you have obtained prior written agreement from us that you can incur these fees. Examples of third party fees include property valuations associated with SDLT/LBTT/LTT returns or Research & Development claims not prepared by you
Insurers will not pay you for professional expenses incurred for a corporate client if records and books of account have not been kept in accordance with the Companies Act 2006.
Taxes
Insurers will not pay you for taxes, fines, interest or any other duties or penalties imposed or assessed upon you by any revenue authority, court or Tribunal.
Work and pensions
Insurers will not pay you for any dispute arising under the National Minimum Wage Act 1998 or Enquiries from HMRC and/or Department of Work and Pensions into a claim made by a client under the Tax Credits Act 2002 or any legislation amending or re-enacting the act;
Complaints
If you are dissatisfied with any aspect of the handling of your insurance please contract;
Markel International Insurance Company Ltd 20 Fenchurch Street, London EC3M 3AZ. email taxclaimsuk@markel.com or call 0370 166 6271. Please quote Scheme number 23/09/5169/M. Altermatively contact Hencilla Canworth on tel: 020 8686 5050.
If you remain dissatisfied you can contact the Financial Ombudsman Service at:
South Quay Plaza
183 Marsh Wall
London
E14 9SR
Details of our regulator
Markel International Insurance Company is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Hencilla Canworth GI Ltd is authorised and regulated by the FCA – ref 948880. The FCA website, which includes a register of all regulated firms, can be visited at www.fca.org.uk.
General contract disclosure
You will not receive any advice or recommendations in respect of this insurance. This cover is provided to qualifying members of Spotlight with specific Insurers being selected and agreed by Spotlight. Hencilla receives a commission from the insurer for arranging this cover. In sourcing and placing your policy, Hencilla acts as the agent of the Insurer.
Financial services compensation scheme.
All policy insurers are members of the Financial Services Compensation Scheme. You may be entitled to compensation from the scheme if they are unable to meet their obligations.
Additional Information
If you have any questions with regards to this insurance policy please contact Hencilla Canworth GI Ltd at :
Simpson House
6 Cherry Orchard Road
Croydon
CR9 6AZ
tel 020 8686 5050
spotlight@hencilla.co.uk
Fair processing of data
How Hencilla processes members personal data is detailed within the Hencilla Privacy Notice which is available on request or by visiting:https://www.hencilla.co.uk/Documents/HC_Privacy_Notice.pdf
Spotlight Premiere Tax Investigation Professional Fees Policy Wording: Full document can be downloaded here.
Version 04/09/2023