For the last few years, Westbury have taken out a group insurance policy covering clients against the cost of dealing with a tax investigation. Tax enquiries usually require a considerable amount of our time and consequently additional fees. Providing clients with this cover negotiated through PFP, ensures that in the event of an investigation or enquiry professional fees are covered up to £100,000.
Other organisations, trade associations and the like also provide similar cover. The Federation of Small Businesses specifically has a tax cover and I know that a number of our clients have opted out of our scheme in preference of the FSB cover.
As an FSB member through our subsidiary the Made Simple Group, we recently received details of this cover and interestingly, the areas of enquiries not covered are quite concerning. In particular, some of the more common enquiries such as Aspect, IR35, VAT control visit and PAYE compliance visits are specifically excluded whereas our policy includes IR35 disputes and Aspect enquiries, pre-dispute cover, partners/directors cover, and most other types of enquiry.
The lesson here is of course – check the small print – because having an insurance policy that doesn’t really cover you for the most likely events is pretty pointless.