Tax Enquiry Insurance is coverage that protects you or your business in the case that you are investigated by the government HM Revenue and Customs in tax enquiry, VAT enquiry, or aspect enquiry. The coverage is fairly inexpensive, and can save you a lot of money in the case that you are the subject of an HMRC enquiry. In fact, under this coverage, if you find yourself in an enquiry, you will have an agent appointed to you to protect your interests and rights during the case. The coverage may also allow for partial or total payment of penalties and additional tax amounts.

Most tax consultancy firms will offer tax enquiry insurance at a discounted rate when you take advantage of their tax advice and help in filling out your self assessment forms. These policies are more likely to offer partial or total payment of penalties and additional taxes, because the consultant will be partially or wholly responsible for the mistake. These policies are also more likely to cover VAT insurance for businesses, especially if you also use the service for your business accountancy. If you do not use tax consultancy firms for your self assessments, you can still get tax enquiry insurance through tax consultancy firms or insurance agents. These policies are more expensive and cover much less, but will include aspect enquiry cover.