LONDON, 27 April 2009 UK companies could face additional, unexpected accountancy fees due to new tax investigation powers from HMRC. In response, Aon Professional Services Group is helping accountants offer their clients a cost effective insurance service that will meet the professional fees incurred in an investigation. Equally, the product will give clients peace of mind that they won’t have to scrimp for additional accountancy fees.

HMRC has already increased penalty levels and has introduced the concept of reasonable care, where a penalty may be waived or increased. In practice this means that tax enquiries are likely to be more drawn out and therefore cost more to deal with.  From 1st April HMRC can now also enter a business premises without warning to inspect the business records and premises. These new intervention powers may cause great difficulty for businesses to respond to in the correct way without professional assistance.

The insurance cover works by the company or individual client signing up to the Accountants Tax Investigation Service. In the event of an investigation the accountant can claim back the fees from the insurance policy. The insurance will pay up to £75,000 subject to policy terms and conditions, towards accountants’ fees in the event of a tax investigation for Full Enquiries, VAT, PAYE or NIC disputes and Aspect Enquiries.  Cover can also be provided to deal with the new intervention visits.

Tax investigation insurance has been deemed best practice by the Institute of Chartered Accountants in England and Wales, as part of an added value service to clients from their accountant. Simultaneously, the profession needs to dispel the popular myths held by taxpayers that they will only be investigated if fraudulent or if their accounts are out of order. 

Luke Hamm at Aon Professional Services Group commented: “In flourishing times, accountants may waive or reduce fees to help clients with HMRC investigations, but now accountants have less flexibility and need reassurance that they will be paid for their advice. At the same time, it’s crucial that accountants are prepared to support their clients if they are subject to an investigation and demonstrate the added value they can bring.”
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For more information contact:
David Skapinker
020 7505 7478
David.skapinker@aon.co.uk
http://aon.mediaroom.com

About Aon
Aon Corporation (NYSE: AOC) is the leading global provider of risk management services, insurance and reinsurance brokerage, and human capital consulting. Through its more than 37,000 colleagues worldwide, Aon readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Aon's industry-leading global resources and technical expertise are delivered locally through more than 500 offices in more than 120 countries. Named the world's best broker by Euromoney magazine's 2008 Insurance Survey, Aon also ranked highest on Business Insurance's listing of the world's largest insurance brokers based on commercial retail, wholesale, reinsurance and personal lines brokerage revenues in 2008. A.M. Best deemed Aon the number one insurance broker based on brokerage revenues in 2007 and 2008, and Aon was voted best insurance intermediary, best reinsurance intermediary and best employee benefits consulting firm in 2007 and 2008 by the readers of Business Insurance. For more information on Aon, log onto www.aon.com

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