Tax investigation and ICAEW

Tax investigation and ICAEW

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I am looking at the current tax investigation schemes and the requirements for an Icaew practice to offer this service to clients.

Any pointers?

Replies (5)

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By marks
07th Dec 2015 01:08

dont expect there will be any requirements to offer?

Cant comment for ICAEW as i am an ICAS bod but wouldnt expect there would be any requirement for you to offer the service of tax insurance cover to clients.

Really comes down to a personal choice of whether you want to offer this add on service to your clients and whether you want to go with all client or client opt in cover.

We have all client cover with Taxwise and have just recently renewed again for another year.

We currently just include the service for all clients with our fixed fee charges but from 1 February going to invoice clients separately but really cheaply for the year

£24 tax return only

£36 sole trader

£48 partnership

£60 ltd co

At these rates will expect 90%+ take up which will probably result in about £6k - £7k extra fees. We will then expect to take £3k - £4k a year in enquiry invoices so looking to net about £10k additional income.

 

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By johngroganjga
07th Dec 2015 08:02

Additional income?
Don't quite follow your figures. If you charge your clients £6k - £7k per annum the increase in your net income is not that figure, but after deducting what it costs you to buy the cover from Taxwise.

And your £3k - £4K for dealing with enquiries must be fee incom you would have had in any event - now just paid by Taxwise instead of by your clients.

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Replying to tom123:
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By marks
08th Dec 2015 01:13

make up of figures

johngroganjga wrote:
Don't quite follow your figures. If you charge your clients £6k - £7k per annum the increase in your net income is not that figure, but after deducting what it costs you to buy the cover from Taxwise. And your £3k - £4K for dealing with enquiries must be fee incom you would have had in any event - now just paid by Taxwise instead of by your clients.

The £6k - £7k fees is fees after taking the taxwise monthly charge into account.

The £3k - £4k fees for dealing in enquiries we wouldnt necessarily have had in any event.  If we say to a client who isnt covered that will costs say £400 to deal with enquiry some of them just accept the assessment and pay the tax or decide to do deal with the enquiry themselves.  If we say that we can deal with it and it costs them nothing then they just say go ahead with dealing with the enquiry as it doesnt cost them anything and they dont need to deal with it themselves.

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By malcolmrichards
07th Dec 2015 11:16

ICAEW

It's deemed 'best practice' to offer a 'service'.

Whom the underwriters are is a matter for you.

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By birdman
08th Dec 2015 12:00

Providing or arranging insurance..

Is a regulated service under the FCA so you must be careful not to "sell" this as insurance without the appropriate registration.

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