Professional expenses insurance
This item is not written in response to a particular query, but is a general comment on an interesting situation.
Many professional firms have now arranged professional expenses insurance for their clients in the event of a tax enquiry or investigation. In some instances the insured person is the client, but in other instances the firm itself is the insured party, and takes out insurance to cover all or a block of clients.
Is the insurance premium paid a tax allowable deduction? This question has vexed accountancy practitioners for some time. There is some evidence that amounts paid have been allowed without prejudice in clients accounts in the past. Other commentators, including the writer, have stated that these insurance premiums are not tax...