Following Harry Redknapp being cleared of tax evasion earlier this month, demand for Tax Investigation Insurance is soaring according to Yorkshire based chartered accountancy firm Clough & Company.

Specialist insurance policies are available to cover accountancy and legal fees that may be incurred during HMRC tax enquiries.

Steven Gash, Practice Chairman of Clough & Company, explains: "Any business or individual submitting a tax return can be investigated by HMRC and a large number are selected randomly so lots of people find themselves under investigation every year.

Well worth the money

"In the past a lot of people failed to understand how much an investigation could cost them and just saw the insurance as another cost.

"But we recently had a client that had to claim for fees of more than £40,000 through Tax Investigation Insurance even though they were completely innocent so it's well worth the small outlay.

"It also cost the last seven clients to be investigated, who didn't have cover, a total of £139,723 which could have been paid by insurers!

"Although very few people will find themselves in Harry Redknapp's shoes, his situation highlights how much these cases can cost and how long they can last and it's certainly raised awareness about the importance of keeping tax affairs in order.

"We've been offering this insurance for the last 10 years but just recently enquiries for it have gone through the roof."

This month jurors accepted Redknapp's denials that he avoided tax on £189,000 in a Monaco bank account. His acquittal alongside co-defendant and former Portsmouth chairman Milan Mandaric blew the final whistle on an £8 million City of London Police investigation that lasted five years.

As a result of the sudden interest in these policies, Clough & Company is now offering 12 months of cover to all new clients using any of the firm's services.

For further information visit www.clough.co.uk