QDOS Tax Liability Cover (TLC35) vs Offerings from IPSE Plus

[shazbot]

In answer to your specific question in theory you wouldn't need tax investigation insurance in your first year of trading. In practise HMRC could start a tax investigation if they see your VAT returns are dodgy after a couple of quarters or something else alerts them to something being not right. As a business owner it is up to you to assess the risk for your business yourself.

You are right about only "in theory" not needing insurance in your first year!

I've been contracting for 3 months through a new VAT registered company, and have not even submitted my first VAT return, but have just had a letter from HMRC VAT fraud investigations dept that could turn into a full investigation. More details in this thread.

So it's best to get full insurance from day 1 - HMRC can investigate whenever they like even in first quarter.

[SueEllen]

You are right about only "in theory" not needing insurance in your first year!

I've been contracting for 3 months through a new VAT registered company, and have not even submitted my first VAT return, but have just had a letter from HMRC VAT fraud investigations dept that could turn into a full investigation. More details in this thread.

So it's best to get full insurance from day 1 - HMRC can investigate whenever they like even in first quarter.

As stated in the thread get another accountant. The other accountants on the board haven't had those weird questions for any of their clients.