Enquiry and Dispute Fee Protection Service
Discussion
What do you think of this?
Had a letter the other day (from our accountant) telling us they now offer this service.
It's basicly an insurance policy to cover extra accountancy costs, should the taxman randomly pick you out for investigation.
Personally, I would not pay any extra to anyone, on principal.
If the taxman comes looking, I have nothing to hide and would help them myself. It would take up a lot of extra time (and the taxmans), but so be it, they would have to be patient.
It's hard enough making money these days, without involving extra costs.
Had a letter the other day (from our accountant) telling us they now offer this service.
It's basicly an insurance policy to cover extra accountancy costs, should the taxman randomly pick you out for investigation.
Personally, I would not pay any extra to anyone, on principal.
If the taxman comes looking, I have nothing to hide and would help them myself. It would take up a lot of extra time (and the taxmans), but so be it, they would have to be patient.
It's hard enough making money these days, without involving extra costs.
Edited by gtr-gaz on Wednesday 9th April 11:39
NatWest offered something like this to me.
I didn't look into it that much, but my assumption, although it may be a false one is that it may be difficult to claim on.
For example, I have legal costs coverage with my tailored home insurance policy. However, the exclusions are something like 'any contract...'. As pretty much anything can be attributed to a contract somewhere, it does make this a bit unapplicable for most things which may occur!
My worry with such tax things, although I don't do anything dodgy that in a roundabout way the policy may say something like, "If you are doing something illegal or we thing is dodgy we won't cover you". Thus if you have made a mistake somewhere and you would need them you wouldn't be covered.
I would look into the small print first before considering anything like that.
I didn't look into it that much, but my assumption, although it may be a false one is that it may be difficult to claim on.
For example, I have legal costs coverage with my tailored home insurance policy. However, the exclusions are something like 'any contract...'. As pretty much anything can be attributed to a contract somewhere, it does make this a bit unapplicable for most things which may occur!
My worry with such tax things, although I don't do anything dodgy that in a roundabout way the policy may say something like, "If you are doing something illegal or we thing is dodgy we won't cover you". Thus if you have made a mistake somewhere and you would need them you wouldn't be covered.
I would look into the small print first before considering anything like that.
I am a partner at an accountants and we offer this service to our clients. I would recommend, the premiums are not too bad, but an enquiry/investigation can cost you thousands in professional fees. Make sure you read the small print and find out if they cover aspect enquiries, which are not the same as an investigation!
We have a number of clients that it has paid out.
We have a number of clients that it has paid out.
Edited by wattsm666 on Wednesday 9th April 13:41
I used to work for a firm of accountants who offered this service. The firm took out a global policy with the insurers which covered ALL their clients. The clients did not have to pay anything extra to the accountants to be included in the scheme.
However, eventually the insurers began to query every single case that was put before them until it became so onerous that the accountancy firm cancelled the policy.
Whether you decide that such an insurance policy is worth considering you should really evaluate the risk of your business being selected for enquiry.
The number of businesses selected for enquiries is far less than it used to be (contrary to what the insurers - or even your accountants might say) and may enquires are concluded quite speedily without too much in the way of extra accounting fees being incurred.
If your accountnats are offering the service to you for a fee, ask them if you are still covered whether you pay the accountants thios extra fee or not.
However, eventually the insurers began to query every single case that was put before them until it became so onerous that the accountancy firm cancelled the policy.
Whether you decide that such an insurance policy is worth considering you should really evaluate the risk of your business being selected for enquiry.
The number of businesses selected for enquiries is far less than it used to be (contrary to what the insurers - or even your accountants might say) and may enquires are concluded quite speedily without too much in the way of extra accounting fees being incurred.
If your accountnats are offering the service to you for a fee, ask them if you are still covered whether you pay the accountants thios extra fee or not.
Edited by Eric Mc on Wednesday 9th April 14:41
Thanks for the tips 
They would charge me for this insurance. In my case an extra £125 a year in premiums, something I am not willing to pay.
As Eric pointed out, investigations by the taxman are not that common. In the 20 years I have been in business, I have not seen them once!
(famous last words?)
They would charge me for this insurance. In my case an extra £125 a year in premiums, something I am not willing to pay.
As Eric pointed out, investigations by the taxman are not that common. In the 20 years I have been in business, I have not seen them once!
(famous last words?)
gtr-gaz said:
Thanks for the tips
They would charge me for this insurance. In my case an extra £125 a year in premiums, something I am not willing to pay.
As Eric pointed out, investigations by the taxman are not that common. In the 20 years I have been in business, I have not seen them once!
(famous last words?)
gaz, are you in the FSB? I believe they include a similar insurance within their package and the whole thing is only about £100 per year.They would charge me for this insurance. In my case an extra £125 a year in premiums, something I am not willing to pay.
As Eric pointed out, investigations by the taxman are not that common. In the 20 years I have been in business, I have not seen them once!
(famous last words?)
HRG said:
gtr-gaz said:
Thanks for the tips
They would charge me for this insurance. In my case an extra £125 a year in premiums, something I am not willing to pay.
As Eric pointed out, investigations by the taxman are not that common. In the 20 years I have been in business, I have not seen them once!
(famous last words?)
gaz, are you in the FSB? I believe they include a similar insurance within their package and the whole thing is only about £100 per year.They would charge me for this insurance. In my case an extra £125 a year in premiums, something I am not willing to pay.
As Eric pointed out, investigations by the taxman are not that common. In the 20 years I have been in business, I have not seen them once!
(famous last words?)
gtr-gaz said:
HRG said:
gtr-gaz said:
Thanks for the tips
They would charge me for this insurance. In my case an extra £125 a year in premiums, something I am not willing to pay.
As Eric pointed out, investigations by the taxman are not that common. In the 20 years I have been in business, I have not seen them once!
(famous last words?)
gaz, are you in the FSB? I believe they include a similar insurance within their package and the whole thing is only about £100 per year.They would charge me for this insurance. In my case an extra £125 a year in premiums, something I am not willing to pay.
As Eric pointed out, investigations by the taxman are not that common. In the 20 years I have been in business, I have not seen them once!
(famous last words?)
FSB is just for peeps like you (and me) though. It's worth looking into the benefits and seeing if they make the subscription worthwhile for you. They have cover for investigations, a legal helpline and all sorts of other stuff which I liked when I set up my business.gtr-gaz said:
HRG said:
gtr-gaz said:
Thanks for the tips
They would charge me for this insurance. In my case an extra £125 a year in premiums, something I am not willing to pay.
As Eric pointed out, investigations by the taxman are not that common. In the 20 years I have been in business, I have not seen them once!
(famous last words?)
gaz, are you in the FSB? I believe they include a similar insurance within their package and the whole thing is only about £100 per year.They would charge me for this insurance. In my case an extra £125 a year in premiums, something I am not willing to pay.
As Eric pointed out, investigations by the taxman are not that common. In the 20 years I have been in business, I have not seen them once!
(famous last words?)
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