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Fee protection insurance

Fee protection insurance

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I'm looking at signing up with Taxwise for fee protection insurance.

  • Does anyone else do this? 
  • Is it well received by clients? 
  • Do you explicitly charge your clients or is it hidden in your fees?  Do you make a profit on it?
  • Have you claimed on the policy?  Did they pay out quickly?
  • Do you use the helplines?

Any thoughts?

Thanks

Replies (8)

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By roblpm
14th Mar 2016 11:48

Mixed Blessing
We have a whole practice policy. Cost works out at about £25 a company (ie including directors).

So we bundle it in. And then when an enquiry comes in we can tell the client that we will work on it and claim from the insurance.

So it works well but the problem comes if you claim too much obviously the premium goes up. So the best thing to do would be to self insure which you are not allowed to do.

I think if you try and sell it individually to clients the admin would be horrendous. And with our clients noone would take it up.

We are with PFP and they are pretty helpful.

Thanks (1)
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By happy
14th Mar 2016 12:15

I dont anymore

In a previous life I got caught badly with this; paid for a practice policy couldnt resell enough to clients and it cost me a lot of money. I havent done it since.

I've been running my current practice for 6 years tempting fate I know but I havent had an Enquiry in all that time.

In fact I sometimes wonder if HMRC still exist - they dont seem interested in my clients, dont bother replying to my letters and never answer the phone!

 

Thanks (1)
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By daveah
14th Mar 2016 13:01

Taxwise
I use them for a whole practice policy, inform my few clients what the cost is and charge them accordingly.
Had a couple of claims and they are great to deal with.
With regard to an administrative nightmare, I don't find it that bad but I only have about a dozen clients, so an extra invoice each is not taxing and gives both parties the peace of mind regarding fees.

Thanks (1)
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By thomas
14th Mar 2016 18:33

Thanks for your feedback.  I

Thanks for your feedback.  I already use a tax advice line which costs me £35 per month and I may be able to ditch that and just use the Taxwise helplines which are seemingly unlimited.  Seems too good to be true...

Thanks (0)
Glenn Martin
By Glenn Martin
14th Mar 2016 19:06

Taxwise
I have a practice wide policy and just build the cost into my annual fees.

Not had to make a claim yet but have heard from others that they are good to deal with.

A few clients use the helplines and rate them.

Thanks (1)
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By Ken Howard
14th Mar 2016 19:15

Well recommended

We use Taxwise via the ICPA scheme and highly recommend them.  We've had a couple of very small aspect enquiries and they've paid out virtually immediately upon bill presentation. We've also used their tax helplines a few times, and again, well impressed with their answers.  We offer it to all clients and charge a modest premium, which we set to cover the premium cost - about half the clients take it up, so we tweak the charge every renewal as our best guess at somewhere near the premium charge - some years we make a small profit, some years a small loss.  All their staff we've dealt with are really good, particularly the guy who comes to see us once a year to renew who we find is a genuine helpful guy.  I certainly have confidence that if we do get a nasty/large full enquiry or challenge, then Taxwise will be there for us.  Peace of mind means a lot more than making a bit of profit on it.

Thanks (1)
Man of Kent
By Kent accountant
14th Mar 2016 20:42

Yes
Does anyone else do this? YesIs it well received by clients? YesDo you explicitly charge your clients or is it hidden in your fees?  Do you make a profit on it? Included in standard feesHave you claimed on the policy?  YesDid they pay out quickly? YesDo you use the helplines? Yes

Wouldn't consider changing, very happy with the service.

Thanks (1)
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By marks
15th Mar 2016 00:04

Re questions

1. Yes we have an all client policy with Taxwise

2. Yes when a claim has to be made.

3. We were going to charge for it separately this year but we will just include in fees.  Charges are £24 for tax return only, £36 for sole trader, £48 for partnership and £60 for ltd company.  We charge on about £9k to clients and it costs us about £3k per year.

4. Yes in the last 2 years had about 10 claims.  Most are just small claims of £200-£300 to deal with tax return that is wrong because the client gave us the wrong information.  However we did have a VAT case that lasted about 18 months with the fees being £3k.  Plus e few other VAT visits what we had to attend that paid out about £1k each to cover our time.

5.Once we submit our fee note is settle within about a week.

6. Yes use the helplines probably 1 or 2 times per week.

Thanks (1)
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