At present we use Abbey Tax for fee protection on a client decide basis. This is expensive for the client but comes at no risk to us in collecting money from the client to cover the cost (as would be the case for all client cover).
As the cost is quite high for the small business a lot of clients will not take it out. Is it possible to charge a small fee of say £30 to each client which would cover any investigations by HMRC? We would then not charge for anything further should HMRC come knocking. I've looked on ICAEW website and it seems to suggest that we would be offering an insurance product and therefore cannot be done.
I don't agree that it is insurance product but also want to make sure everything is 100% correct. Surely there would be no difference to a practice deciding that the annual fee for accounts would have the added value of covering any investigation that could be launched?