We have had Fee Protection Insurance for over 10 years covering the whole practice, where we recharged the clients an amount based on their trading status (sole trader, partnership, limited company etc), with clients' having the option to opt-out.
Primarily, we took this on as peace of mind for our clients and ourselves, in case our clients had an enquiry and we needed support from a tax professional in case we were "out of our depth" on any complicated matter regarding VAT, IHT etc
In the beginning, most clients took it up, and we were "quids in", but in the past 4/5 years many clients have opted out of this, and it cost the firms approx. £400 a year net after recharge.
We have not had an enquiry in over 5 years, and it seems the only benefit we have of this is a free tax advice line, which to be honest, we get anyway with our membership of a professional body
My dilemma this year is, is it worth renewing our Fee Protection insurance?