Is Tax investigation insurance really such a no brainer?

Is Tax investigation insurance really such a no...

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Is Tax investigation insurance really such a no brainer?

And if so, how much should you be looking to pay/sell it for?

Any other tips for a new practice would be appreciated…

Thanks in advance

Replies (7)

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By User deleted
10th Oct 2011 20:30

Yes

I am with Peninsula, they do all the mailout if you want, just give them a csv mailing list - there is no minimum take up. I don't do it as a main income stream, it is just useful to know it is there, I don't hard sell it to the client. I just bank and record the incoming and pay over the premium. I mark up between 33 - 50%.

I dillied and dallied for years before taking the plunge, but it is so easy I wish I had done it ages ago.

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By Lancsboy2
10th Oct 2011 22:13

Go for it

i have been charging for hmrc enquiry insurance for the last 12 months and have been making 5% of my fees - well worth doing. we've had 2-3 enquiries - our client base isnt really high on the agenda for hmrc.

 

if your work is up to scratch it should be a no brainer.  i actually sell it to clients as a pointer that we are confident about our work, hence the competitive fee. 

 

these extras make a big diffrence at year end ....

 

 

 

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Chris M
By mr. mischief
11th Oct 2011 09:41

objectionable

I find that last post pretty objectionable, I don't see fee protection insurance as simply a way to scalp clients and I win business off local competitors who see it like that, as insurance rip-offs are generally not the only rip-offs.

I charge £80 per year for an all-in service.  I also assess all clients for the risk of an enquiry - let's face it, 3% per year of self-assessment returns get enquiries and you've got to reckon that CIS and pubs are more like 10% so that leaves a lot of sectors at 1% or so.  The insurance is financially poor value even at £80 for a client in a low-risk sector who keeps good records.

So my policy is:

1.  Every client gets offered the insurance.

2.  If they want more information on likely risks, there is a page on my website all about it.

3.  If I think they are high risk I have very strong discussions with them about getting insured.

4.  Other clients get their risk assessment and the reasons for it and I leave it up to them.

From a practice point of view, my whole client base is insured - but only those who pay the £80 will get my time free in the event of interest from HMRC.

 

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Replying to Glennzy:
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By Lancsboy2
11th Oct 2011 23:36

Mr Mischief - eh?

what is objectionable about my post?  i've re-read and can'f for the life of me see what the issue is

 

i'm not "scalping" clients - I'm providing a valued extra service that clients want, at a price they are happy with, that enables us to make a nice extra income from.

 

too many accountants dont make enough £££ - that doesnt mean that those that do are ripping their clients off.

 

 

 

 

 

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Image is of a pin up style woman in a red dress with some of her skirt caught in the filing cabinet. She looks surprised.
By Monsoon
11th Oct 2011 11:48

Why not?

We are with PFP. Like OGA, they do a mailshot on our behalf. We don't get much take up (about 5%), but I don't want to be an insurance salesman and touch wood I've never had an enquiry.

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By essex accountant
11th Oct 2011 13:57

I don't object

I use CCH and about 50% of my clients take the service. My 'profit' is about £60 per client. CCH cover includes VAT and PAYE reviews and clients are very happy when they have one to (a) get professional representation (b) get it free!

It is great from my viewpoint as I recover all my time on this work at £140 per hour. My 'profit' on the service is about £10k per annum - very good for a sole practioner - plus full recovery of time on reviews and tax investigations.

Each year I explain the service to the client via a letter with my invoice and clients can decide not to pay - few do.

 

 

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By Number Monkey
12th Oct 2011 12:32

Thanks for all your responses!!

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