I've decided that it's high time we invested in an all client fee protection insurance policy. Just for background I set up the practice four years ago. In the first 2-3 years we had virtually no inspections, enquiries or checks so this wasn't an issue for us. However as the client base has grown and we have more history with clients we're starting to get a few more coming in.
There's hardly a glut of these, only a handful of very simple checks so far this year (e.g.: large refund claimed on first VAT return, can we provide details, check on dividends as didn't match final accounts [only a timing thing, no actual issue on that one]).
However as we grow and have even more history there can only be more of these cropping up in future. Also we're doing some more complex work where we can expect HMRC to want to check things. My experience to date is that clients get spectacularly unimpressed when, after having the bad news there is a check, we hit them with the news that we'll have to charge them for dealing with it. As a result, frankly, we don't get paid properly for dealing with these cases.
Therefore I think we ought to take on an all client policy. I tried client decide a couple of years ago and had precisely zero clients saying they wanted it.
Now I want to make this mandatory for all clients by building the protection into the annual fee.
My questions are:
1. Which providers would the community recommend?
2. Am I correct that this is a good idea?
3. For a fairly small practice (<£100k fee income) how much should I be paying (if you'd be kind enough to share)?
Thanks in advance