Cover for tax investigation, facts?

[whattodo]

Hi everyone,

I'm currently looking into tax investigation insurance to give myself more peace of mind. However i'm a bit thin on facts when it comes to what these companies actually do in the case of an investigation arriving on your doorstep. Also i'm looking at the cover given by PCG membership / QDOS / other insurers at the moment, and don't know which would be better, or how they compare.

I was wondering, have any of you had this kind of insurance and been contacted by HMRC? In which case do you immediately contact the people providing the cover, e.g. QDOS? Or your accountant? Do they pick up all the bills when/if your accountant needs to get involved to provide paperwork? Do they meet with you and prepare all the replies to HMRC for you?

I'm hoping someone with more years experience can give me an idea of what to do and if there are lots of hidden costs with any of them in the unlikely event an investigation does happen.

Thanks for your help

[Fred Bloggs]

Basically I pay QDOS and hope.

If I get any requests from HMRC I intend that they will be asked to put the request in writing for me to pass on to my professional advisors. HTH.

[ratewhore]

I'm in the middle of comparing TLC35 with the PCG offering (PCG+/Abbey Tax).

All the information is there if you ask them. You don't need to come on here asking...

[Qdos Contractor]

Our policies cover you from the outset, so as soon as you get a letter you can send it to us and we'll deal with it from there. The representation includes all correspondence and face to face meetings...basically everything from initial PAYE reviews to Special Commissioners hearings.

If your accountant incurs any costs in preparing necessary information, this will be covered by the policy.

[diesel]

Our policies cover you from the outset, so as soon as you get a letter you can send it to us and we'll deal with it from there. The representation includes all correspondence and face to face meetings...basically everything from initial PAYE reviews to Special Commissioners hearings.

If your accountant incurs any costs in preparing necessary information, this will be covered by the policy.

how much is your cover?

[eazy]

Cover Requirement?

First you need to decide what level of cover you require:

1) IR35 Investigation only
2) IR35 + PAYE + aspect enquiries+ Jury service + ....
3) Tax cover + IR35 + PAYE + aspect enquiries
etc

If you want 3), you will need to get all your contracts reviewed and will need to fall outwith IR35 before cover will be offered. If you did not answer all the questions honestly regarding your working practices etc, the insurer may refuse to payout.

PCG & PCG & Qdos/others - Tax investigation Insurance
PCG is a lobbying & campaiging (not for profit) organisation which provides tax investigation insurance as part of membership benefits. Qdos/others are commercial orgainsations offering various levels of insurance. The offerings cannot be compared on price alone in my opinion.

PCG+ Insurance Cover
http://www.pcg.org.uk/cms/index.php?...647&Itemid=303

[ratewhore]

£99 for representation only, or £355 for representation and IR35 liabilities. You can pay monthly at no extra cost & all cover is fully retrospective.

from £355

[Qdos Contractor]

from £355

Sorry, yes (although the increase in premium is at the choice of the contractor).

[whattodo]

Thanks for replying so quickly QDOS, and everyone else. I actually sent a couple of questions to [email protected] about QDOS cover, part of which I put in the first post. That email might be working its way to yourself already.

I also asked whether an investigation by HMRC had to relate to an ongoing contract to be covered, or if having the insurance means all investigations are covered regardless of what contract is focused on? E.g. a contract a year ago.

Oh, and lastly, I think already know the answer to this, but wanted to check. The insurance is for the business rather than the individual correct? So it's something a limited company would take out to cover the cost of investigations, in the same way it has PL insurance.

Thanks again - great foum by the way!

[FarmerPalmer]

If you want 3), you will need to get all your contracts reviewed and will need to fall outwith IR35 before cover will be offered. If you did not answer all the questions honestly regarding your working practices etc, the insurer may refuse to payout.

i.e. if you lose in court they won't pay out.
sounds like money for old rope this insurance malarkey
I knew I was in the wrong business