Tax investigation insurance

[onthehoof]

We currently have insurance for this through our NFU business insurance but accountant wants to take out insurance with them aswell for not insignificant sum.
Accountant says with NFU insurance the insurers can appoint a third party accountant to act and that they (our accountant) would then have to charge us for their time which could run into thousands of £.
Is this correct? How can we have insurance with NFU and still end up paying £££££?

 

[David.]

Your worst enemy in a tax investigation is likely to be your own accountant filling his boots.
Our swanky offices accountant tried to get us to pay this year's ago, after an investigation resulted in a tax bill of £1100 and an accountant bill of £3500. We changed accountants instead, and have no regrets.

 

[Fuzzy]

We currently have insurance for this through our NFU business insurance but accountant wants to take out insurance with them aswell for not insignificant sum.
Accountant says with NFU insurance the insurers can appoint a third party accountant to act and that they (our accountant) would then have to charge us for their time which could run into thousands of £.
Is this correct? How can we have insurance with NFU and still end up paying £££££?

Time to leave NFU and find another accountant !!!

 

[Goweresque]

How much is a 'not insignificant sum'? I have tax investigation insurance via my accountant and it costs me about £100+vat per year.

 

[curlietailz]

I have tax investigation insurance as well via my accountant. And although I can’t remember the exact figure it’s below £200 for sure

 

[Still Farming]

Not worth paper wrote on.
They all stick together.
Easy to pay bill as often costs thousands to fight thousands and no one ever in the wrong even though pay accountants to do correctly???

 

[Quaddog]

I don’t bother with it. I do my books properly and pay my accountant. If I get an investigation I’ll defend myself. Accountant always pestering me to have their insurance but I refuse

 

[Zebbedee]

I’ve had a tax investigation many years ago (30 ish) which actually turned out to be my accountant himself was owing a lot of unpaid revenue so they were investigating him but we were caught up in it as well, trying to defend yourself when your accountant is on the run in another country along with your paperwork is as they say character building,,,,,we now pay our accountant the insurance.

 

[Hfd Cattle]

We pay £80 a yr to our accountant. Worth every penny I think .
They know how to handle the taxman ....probably in a better way than I would.

 

[ISCO]

Never paid it even though previous accountant always pushed it.
I take the view that, as we have a relatively simple business and employ accountant to prepare yearly accounts, that any investigation should be easily dealt with.
I may be wrong but hope I never find out.

 

[Still Farming]

I don’t bother with it. I do my books properly and pay my accountant. If I get an investigation I’ll defend myself. Accountant always pestering me to have their insurance but I refuse

At the end of the day you got to answer the tax person not an accountant.

 

[Nukemall]

£306 Here for any partnership under 1 million turnover. Never taken it out.

 

[texelburger]

We pay £80 a yr to our accountant. Worth every penny I think .
They know how to handle the taxman ....probably in a better way than I would.

Exactly the same here.

 

[Flasheart]

I had an investigation a few years ago, used the NFUM insurance. Obviously my accountants were involved but never cost me anything, they charged their time to the appointed firm who then claimed from NFUM.

 

[texelburger]

We had an investigation years ago.The tax man had,unknowingly to us,driven round the farm.He claimed we had soft fruit and apples which were actually our neighbours.He wanted to know where a reasonable amount paid into a building society account had come from.I had to think for a minute.I then stood up ,dropped my trousers,and pointed to 2 eight inch scars either side of my knee."Insurance payout from a Cruciate ligament replacement " I said.That shut him up even though I could never remember where that money came from.This was around 1985 .He only got a couple of quid out of us for Barbour jackets claimed as work clothes even though I thought he was harsh on that.Dad was always honest and did things by the book.

 

[Steevo]

How much is a 'not insignificant sum'? I have tax investigation insurance via my accountant and it costs me about £100+vat per year.

I have tax investigation insurance as well via my accountant. And although I can’t remember the exact figure it’s below £200 for sure

We pay £80 a yr to our accountant. Worth every penny I think .
They know how to handle the taxman ....probably in a better way than I would.

Reading all of the above I was starting to wonder if I was being over charged given I've just paid it at £255 + VAT.

£306 Here for any partnership under 1 million turnover. Never taken it out.

Snap, exactly the same here.....although I have taken it out the last couple of years for the first time. Seemed relatively cheap insurance compared to £££ accountant bills despite, like the OP theoretically having cover through the NFU.

I'm unsure whether the NFU insurance is held directly with them, but knowing their legal insurance is subcontracted via DAS...I wouldn't fancy finding out that the tax investigation insurance was handled likewise. At least I have more confidence my accountant's policy should cough up rather than do a wriggle. According to the info it's via the "UK's Market Leading Fee Protection Scheme".

 

[livestock 1]

Think I pay £300 plus for insurance through accountant. Apart from everything else mentioned on here do you have the time to attend yourself? If not it’s cheap in my eyes

 

[Kiss]

Reading all of the above I was starting to wonder if I was being over charged given I've just paid it at £255 + VAT.


Snap, exactly the same here.....although I have taken it out the last couple of years for the first time. Seemed relatively cheap insurance compared to £££ accountant bills despite, like the OP theoretically having cover through the NFU.

I'm unsure whether the NFU insurance is held directly with them, but knowing their legal insurance is subcontracted via DAS...I wouldn't fancy finding out that the tax investigation insurance was handled likewise. At least I have more confidence my accountant's policy should cough up rather than do a wriggle. According to the info it's via the "UK's Market Leading Fee Protection Scheme".

DAS what a shambles of a company struggle to find anything that they’re not linked to however,

 

[Hfd Cattle]

Apologies everyone....just popped in the house for a quick coffee and asked the OH how much we paid .....£195
She said it was £80 about 5yrs ago !!

 

[livestock 1]

Also if you are paying NFU insurance for this and the accountant wants it through themselves or doesn’t rate the insurance through NFU then I would cancel the existing insurance and go through accountant. After all you and your accountant should work together. It would be interesting to see what reductions in premium you get.