Help required; Adrian Flux income declaration

woodythefox

I would hugely welcome any advice on the following as an urgent issue. While I appreciate it is a little bit of a read, I am truly helpless in the matter at current and would be very grateful for your insights.

I am insured through Marketstudy as a company, however Adrian Flux is the insurance broker. I have recently paid for insurance on a motorbike and additionally a car; these insurance costs have been paid in full annual amounts on separate policies. The car has been insured for three months of an annual policy, the motorbike policy starts in three weeks time but the amount has been paid in full.

Yesterday (02-Apr) I was contacted by an individual from Adrian Flux. I have at no point indicated to any insurance company (I have been with Adrian Flux for three years) that I perform recreationally within a local band, and I can honestly confirm to you all I do so on a strictly no-profit basis. Their representative explained to me they have identified I perform in a band whose records are sold digitally via iTunes; this, in their eyes, is classed as an undisclosed secondary occupation, and as result they must class both this and “ticket sales” as supplementary income. Furthermore, they have advised me there will be an additional £92.13 charge for the insurance of my motorbike,and they have now refused to insure my car on this principal alone. They have issued me with a “Road Traffic Act Cancellation Letter” which stipulates “This cancellation letter has been issued as we are not in receipt of;”, how ever it is simply blank from that point. It has been made clear, however, if I do not cancel my car policy within 7 days I will be uninsured, black listed as having been refused insurance and not financially remunerated in any form.

The effects of this for me are as follows; I must either pay an additional £92.13 to continue insurance on the motorbike, or pay a £30 cancellation fee (purely because I am within a 14 day grace period of taking the policy out). With regards to the car, I have no choice but to cancel the policy and will lose half of the value of the policy total (£265) and have to pay an additional £100 cancellation fee. This is apparently because half of any cancellation goes directly to the underwriter outside of the grace period. I have been quoted by two different company representatives I will be refunded £154.50/£237.33 as a result of mandatory policy closure on a £530 policy, which has been active for 3 months.

Firstly, I am outraged to say I have effectively been “checked up on” by my insurance company as I have no convictions, points or anything else to hide for that matter. My band is purely recreational and any money passing through the band is both pitiful in amount and directed to my guitarists Paypal account; however we have not even received any income at all as of yet, regardless of how negligible it would be. I can prove I have no secondary income as no money has entered my bank account outside of my salary figure as a heating engineer; my only income source. It is additionally worth noting I have only been part of this band for 11 weeks, a five track EP has been live 2 weeks and no monies generated.

I now have six days to act on the matter, and would greatly appreciate any advice that could be offered, as I am a naive individual when dealing with UK laws and entirely confused as to what action I can take. Is it worth contacting the financial ombudsman service? All I know, is I am both appalled as a loyal, honest and law-abiding customer, and suffering from what appears to be akin to a case of victimisation and exploitation.

Thank-you all kindly for your advice in advance,

Mike

Gemma__3

Go Carole Nash, My partner is with them and has no issue. My partner had issues with Adrian Flux and Bennetts at least you know where you stand with CN

wealdroam

An individual's occupation is taken into consideration when calculating insurance risks, and hence premiums.

I understand that people in 'the entertainment industry' are considered by some insurers to be riskier than most.

You would be better asking your questions on the insurance board.

arcon5

If you are actively selling this music, irrespective of how much you've taken or whether you've made or profit or not you should be registered as self employed. You have 3 months to do it after which a penalty applies.

You may see it as a hobby, but in light of money exchanging hands I fear the insurance company are correct in classing it as a secondary occupation.

Will they agree to commence with the policy for a higher premium? As having to declare have had a policy cancelled in the future due to nondisclosures will affect your premiums anyway

antrobus

arcon5 wrote: »

If you are actively selling this music, irrespective of how much you've taken or whether you've made or profit or not you should be registered as self employed. You have 3 months to do it after which a penalty applies...

On a point of order. The £100 penalty for failing to register for the payment of self-employed NIC was abolished in 2010.

arcon5

antrobus wrote: »

On a point of order. The £100 penalty for failing to register for the payment of self-employed NIC was abolished in 2010.

There's a penalty also for failing to register with HMRC as self employed.

room512

Had this problem when I came to renew my car insurance. OH is a musician in his spare time - electronically from home, never performs at a gig and our current insurer refused us and to have him insured on another policy cost an extra £48 a month so he is no longer insured on the car. was ridiculous to me as I can't how sitting at home on a computer doing music has any impact on his driving! When we come to renew we will look at some companies recommended by the musician's union.

terra_ferma

arcon5 wrote: »

There's a penalty also for failing to register with HMRC as self employed.

Only if you are liable to pay taxes
http://www.hmrc.gov.uk/about/new-penalties/

Under the new penalty system:

• there is no penalty until tax is unpaid or undeclared as a result of failing to notify

http://www.hmrc.gov.uk/about/new-penalties/faqs.htm#35

It makes sense, it would just be more paperwork and costs for HMRC with no real benefit.

Silentmemory

I suppose they think driving to gigs is an increased risk. Driving late at night etc.

Elsewhere

I think a possible extra risk insurers consider for musicians is valuable equipment they may be transporting in their car to and from gigs.

A friend had his car stolen - the boot contained his amps, a couple of expensive guitars etc. The car insurance wouldn't pay for the loss of this equipment and neither would his house insurance, as the items were not indoors.