Tax enquiry fee protection insurance

bellybuttonfluffman

My accountant recently sent me details of a 'tax enquiry fee protection insurance' via a company called TaxWise (brief policy details: <http://www.england-clarke.co.uk/pdf/FeeProtectionService.pdf>).

The cost of this service would be £358.67 per year but as my accountancy bill (simple small company accounts and filing of personal tax return) is only around £450.00/year, this would really bump up the accountancy bill.

I have nothing to hide but I wonder what the chances are of the HMRC picking on me and if so, what the potential costs would be?

Any thoughts appreciated.

dacouch

I assume you run a business.

A lot of Business Insurance Policies include Tax Investigation Cover in the Legal Protection part of the policy free of charge.

Have a look at your business insurance or give them a ring to ask if you already have the cover and if not how much they would charge to include it (You may get the benefits of commercial legal expenses as well)

Pimpslider

We recently got one through from our trusted Accountant of 15+ years.

It was CCH Premier Protection, which covers up to £100k of their time. I've looked on the CCH Site but it doesn't give costs.

We were quoted £90 inc.vat p/a. I guess the annual rate (Premium) is dependent on the typical tax bill you run up. The most recent one was about £400.

I'm umming and ahhing about taking this out. I trust the Accountant but do I really need it? It's never been offered before. Are there wholesale changes about to appear in the world of HMRC that may make this useful?

:undecided:huh::think:

dacouch

Do you have a business insurance policy ? If so check with them as you may already have tax protection included in that. If not you can often include Tax Protection AND Commercial Legal Expenses for a reasonable price often a price that will compete with what your accountant has quoted you for just tax protection

foggytown

I would love to see the policy wording for this one. Several thoughts come to mind. Like - who exactly is this "Practice" that is insured by Taxwise and who will be "defending" you? (I love the scare verbiage! They aren't going to "defend" you because it's only an enquiry - not a prosecution. "Represent" would have been much less emotive - but less commercial.) Looks like they are a firm of accountants - not an insurer so I wonder who the insurer may be? All a bit "iffy".

DavidRogers1968

Do you know if your accountant will receive a commission payment for refering you to this company?

I too run a my own business and am still undecided about this one.

davdav

they offered 25000 protection for just £29 compared to the £180 tax wise wanted...but tax wise were protecting up to 75000.... I would assume 25000 is sufficient as my insurer said that was their "standard" but i asked them to look into the cost of covering for 75000 just incase...basically the moral is ask your prof liability insurer first!! Good luck

castle96

my cost was £6
extent of cover ? don't know - never saw a policy