The best way to explain fee protection to clients is plainly: HMRC can check any return, answering its questions takes professional time, and the scheme pays for that time so the client is not faced with an unexpected bill. Be just as clear about what it does not do. It never pays tax, interest or penalties, and it cannot be bought once HMRC has already written.
Tax investigation insurance from £108.75 a year (£9.06 a month).Pays up to £100,000 of your accountant's fees if HMRC opens an enquiry. No excess. Buy online in a few minutes.
What should clients understand before they join?
- What it pays for. The accountant’s professional fees for dealing with an HMRC check, up to the policy limit. With Solar Protect that is up to £100,000 with no excess.
- What it does not pay for. Any tax, interest or penalties found to be due, and checks that began before cover started. See what tax investigation insurance does not cover.
- That it is optional. Under ICAEW’s licensing rules “a licensed firm cannot insist a client purchases its fee protection insurance when providing accountancy services.”
- How long cover lasts. Usually a scheme year, renewed annually, and linked to the practice rather than the client.
How do you explain why it is worth having?
Stick to facts the client can check. HMRC carried out 306,000 compliance checks in 2025 to 2026, and its compliance work brought in a record £50.2 billion. Small businesses account for 62% of HMRC’s estimated tax gap for 2024 to 2025, and the largest behavioural cause is failure to take reasonable care, not deliberate evasion. All of these figures, with sources, are on our HMRC enquiry and investigation statistics page.
Then explain how selection works. HMRC uses data matching and third party information, described in our guides to HMRC Connect and what triggers an HMRC investigation, and it also runs random enquiry programmes. A check does not mean HMRC suspects wrongdoing, but every check needs a professional response.
How long can HMRC look back?
For a Self Assessment return filed on time, HMRC normally has 12 months from the date it was delivered to open an enquiry (Taxes Management Act 1970, section 9A). Company Tax Returns have a similar 12 month window. After that, HMRC can still make a discovery assessment: generally up to 4 years after the end of the tax year, 6 years where the loss was brought about carelessly and 20 years where it was deliberate. So a return filed years ago can still lead to questions.
Run an accountancy or bookkeeping practice? Solar Protect runs fee protection schemes for practices, so the cost of dealing with an HMRC enquiry into a client is covered rather than written off.
What should you avoid saying?
- Anything that sounds like it pays the tax. “You are covered if HMRC investigates” invites a misunderstanding. Say “your fees for dealing with HMRC are covered”.
- Scare tactics. Most clients will never have a full investigation. The case for cover is that when a check does come, it is costly and unpredictable.
- Promises the policy does not make. Do not describe exclusions loosely or say every type of check is covered. Point clients to the summary of cover.
- Pressure. Present it as a choice and record the decision, including when a client declines.
Can clients claim the cost against tax?
Usually not, and it is better to say so up front. HMRC’s Business Income Manual at BIM46452 says premiums for cover that includes accountancy fees for negotiating additional liabilities arising from careless or deliberate inaccuracies are not allowable, and that “The cost remains disallowable even if the taxpayer makes no claim under the policy”.
What wording could you use in a letter or email?
Example wording, to adapt to your own scheme:
“HMRC can open a check into any tax return, sometimes at random. Responding takes our time, and that time is not included in your annual fee. Our fee protection scheme pays our professional fees for dealing with covered HMRC checks, up to the policy limit, for an annual charge of [amount]. It does not pay any tax, interest or penalties that HMRC decides are due, and it cannot cover a check that has already started. Joining is your choice and does not affect the service we provide. The summary of cover explains exactly what is included.”
How do you answer common objections?
“I have never been investigated.”
That is normal, but HMRC’s selection does not depend on history. Random enquiries and data matching mean a first check can come at any time.
“My affairs are simple.”
Simple affairs usually mean a shorter check, but even a short check takes professional time, and an aspect enquiry can widen if HMRC finds something it wants to explore.
“I will join if HMRC writes.”
Cover has to be in place before the check starts. Our guide to buying cover after HMRC contacts you explains why.
“How much would an enquiry cost me without it?”
It depends on the type and length of check. Our guide to how much an HMRC investigation costs sets out what drives the fees.
Where can I find more help?
Read fee protection schemes for accountants and how to run a fee protection scheme. Solar Protect provides scheme marketing and mailing support for practices: see how our accountant schemes work. For a business that wants its own policy, read about our tax investigation insurance or get a quote.
Related Accountapedia entries
Related cover: Professional indemnity insurance for accountants and What professional indemnity insurance covers. For the whole practice, see insurance for accountants and fee protection schemes for your clients.
Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 7 October 2026. This guide is general information, not legal, regulatory or tax advice.