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HMRC tax enquiries are targeted to increase tax revenues and are often conducted at record levels. HMRC has been granted powers to conduct for Business Record Checks, and clients are often chosen randomly. These are usually compliance audits; however, with tax protection insurance, you can claim up to £75,000 of professional costs under the following circumstances:
- When additional VAT
is being pursued
- When additional PAYE tax or National Insurance Contributions are being pursued
- When HMRC enquires about tax returns related to any buy-to-let properties owned by you