HMRC Tax investigation insurance.
Is it worth it? My accountants keep sending me info regarding this, inviting me to take up the insurance offer to pay their fees in any investigation. I already have part of this cover with my public liability insurer, but obviously they use their own accountant to represent the client, rather than my own. So as per question, is it worth it for about 120 quid a year!
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One of my neighbours was (in theory) a painter and decorator, very much an "Arthur Daley" type, into a bit of everything. I remember when the tax man descended on him years ago, huge bill for unpaid income tax. The dust had barely settled when the VAT man knocked on the door :eek:
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Well I pay HMRC per month, to avoid a huge bill at the end of each year. I have been self employed for 30 years and. touch wood never been investigated. I am always prompt with my books to the accountant and dont claim for every single item spent. I also keep my account for business seperate from the household joint account, so they can see everything I have earned and spent.
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In 25 years as self employed I was looked at only once by the taxman and that was because of a mix up over NIC payments.
The VAT man however is different :mad: 4 investigations in that time, and no amount of complaining to the VAT people was worth it. That type of insurance isn't worth it, a good accountant will include problems in their annual fees for you, as you say you still have to find any extra tax/penalties anyway. As my accountant used to say "always pay a bit each year, if your taking from them then they will get interested." |
If you plan to buy this, have a look at joining the FSB.
They include this insurance with the membership. Any trustworthy accountant would have told you this. |
What is the fsb.?
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