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Where Taxpayers and Advisers Meet

Low cost insurance to cover investigations

jase@xmsg.com
Posts: 5
Joined: Wed Aug 06, 2008 3:10 pm

Postby jase@xmsg.com » Tue May 11, 2004 6:13 am

I currently pay tax via PAYE and therefore have quite simply tax affairs. I do not currently receive a self assement return, but if I did would be able to complete it without further help (i.e without an accoutant)

Is it possible to take out a low cost insurance to cover me for any costs, should the inland revenue decide to start an enquiry.

I do not mind using an accountant nominated by teh insurer, but would like the piece of mind that if the IR should every decide to enquiry into my tax payment etc that I can pass the matter onto a professional to deal with the matter - and not worry about the expense I am incurring if I have to pay for the accoutants time - i.e there is an article on todays bbc.co.uk online which tell of " A Somerset man has been hit with a £769 accountant's bill following an Inland Revenue investigation which revealed he had failed to pay eight pence in tax"

can anyone recommend any insurance companies that would cover this sort of thing? and provide any links?

Thanks

Ian McTernan CTA
Posts: 1232
Joined: Wed Aug 06, 2008 3:02 pm
Location: Bedford
Contact:

Postby Ian McTernan CTA » Wed May 12, 2004 1:04 pm

If all your income is currently received under PAYE, then I can't see why the Revenue would want to inquire in to your affairs. There are insurance schemes around, but these are usually for clients of accountants as the insurers assume that unrepresented taxpayers are much more likely to make mistakes (mainly through genuine errors or lack of knowledge). Typical costs are around £60-£80 per client. Since your chances of an enquiry are remote (unless you haven't declared something), then given that you have a 5% chance it would cost 20 years premiums, i.e. £1,200- £1,600 to cover you for £769 in accountancy fees.

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com

caron.66@virgin.net
Posts: 5
Joined: Wed Aug 06, 2008 3:11 pm

Postby caron.66@virgin.net » Thu Jun 03, 2004 11:12 am

I agree with Ian
unless you already get a SA Return,then there is no need for an Insurance Scheme.
If you get a Return in the future,then your Accountant would normally only charge for the preparation of Accounts, completion of Return and sundry advice. There is an option to pay an Annual Fee of around £80 for Investigation Cover, purely as it is linked to the Insurers specialised Investigation Helpline.
Accountants Initial Meetings with potential new clients are usually Free and you should ask if they offer such a scheme or charge separately for Investigations before authorising them to act on your behalf.
Caron (Tax Manager)Thompson Kimti Ltd, Gateshead, Tyne & Wear


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cron