A fee protection claim starts the moment HMRC opens a check. Notify the insurer straight away, before significant work is done, send a copy of HMRC’s letter, and agree how costs will be handled. The insurer then pays the agreed professional fees up to the policy limit. If a claim is declined, ask for the reasons in writing, complain to the insurer, and if your client is a small business it may be able to go to the Financial Ombudsman Service.
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.
Step 1: Notify promptly
Most policies make prompt notification a condition. Notify as soon as HMRC opens an enquiry or check, with:
- a copy of HMRC’s opening letter and any information request;
- the client’s details and scheme membership or policy number;
- a short summary of what HMRC is looking at, such as an aspect or full enquiry, a VAT check or a PAYE review.
Step 2: Agree the approach and costs
Read the policy’s conditions on agreeing costs before you start substantial work. Keep time records against the claim, separate from routine compliance work, and tell the insurer if the scope changes, for example if an aspect enquiry widens or HMRC moves to a discovery assessment.
Worried about an HMRC check? Tax investigation insurance pays your accountant’s fees if HMRC opens an enquiry or compliance check. Solar Protect cover pays up to £100,000 with no excess. It never pays tax, interest or penalties.
From £108.75 a year (£9.06 a month) for individuals, £117.57 for sole traders and £207.50 for companies and partnerships, including IPT and the £20 admin fee.
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Step 3: Handle the enquiry
Deal with HMRC in the normal way: answer information requests on time, keep the client informed and work towards a closure notice. If there is a dispute, discuss with the insurer before moving to statutory review or the tribunal.
Step 4: Submit fees
Submit invoices with time records as the policy requires. Remember that tax, interest and penalties are never paid by the policy. If the enquiry reveals an error in your own work, read fee protection and professional indemnity.
What rules apply to the insurer?
Under the FCA’s ICOBS 8.1.1R an insurer must handle claims promptly and fairly, provide reasonable guidance to help a policyholder make a claim and information on its progress, not unreasonably reject a claim, and settle claims promptly once settlement terms are agreed. This rule applies to ordinary commercial customers as well as consumers, although some parts of ICOBS 8 apply only to consumers.
For business insurance, the Insurance Act 2015 requires the insured to make a fair presentation of the risk before cover starts. If that duty is breached, the insurer’s remedy depends on what it would have done with the full facts, from adjusting the terms or reducing the claim to, for deliberate or reckless breaches, avoiding the policy.
What if a claim is declined?
- ask for the reasons in writing, with the policy wording relied on;
- check whether the decision turns on notification, the start date of the check or an exclusion;
- make a formal complaint to the insurer or scheme provider;
- if the complaint is not resolved, consider the Financial Ombudsman Service.
The FCA’s DISP rules let micro enterprises (fewer than 10 people and turnover or balance sheet of no more than €2 million) and small businesses (turnover under £6.5 million, with fewer than 50 employees or a balance sheet under £5 million) take complaints to the Ombudsman. See our guide to the Financial Ombudsman Service.
How does Solar Protect handle claims?
Solar Protect schemes include an online claims portal so practices can make, manage and view claims. See how our accountant schemes work, or for a business that wants its own policy, get a quote.
Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 7 October 2026. Sources: FCA Handbook ICOBS 8.1.1R, ICOBS 1 Annex 1, DISP 2.7.3R and Glossary; Insurance Act 2015 sections 3 and 8 and Schedule 1. This guide is general information, not legal or insurance advice. Always follow your policy conditions.