Reply to: HMRC possible inquiry mitigation

[Darren at Fox-Bartfield]

Tax Insurance

How many cases have they paid out on ? Tax due etc ?

Could be down to a number of factors, including that the contract review and ensuring fully compliant as part of the service is good, or perhaps that any enquiries are batted back to them with no ill effect which again is part of the service. I'm sure that given the number of policies sold, there will have been a number of prods by HMRC.

[radish2008]

How many cases have they paid out on ? Tax due etc ?

[jmo21]

Just had a look and seems steep at £200, I currently pay £65 to Hiscox for twice as much cover (£100k) but it doesn't cover the tax due.

[radish2008]

I've got TLC35 from QDOS as well. Never needed to claim it though tbh.

If you are going to take it you could use the link below or quote QCL57133

www.qdoscontractor.com/code/QCL57133

It will make lots of fluffy bunnies very happy. TYIA

Just had a look and seems steep at £200, I currently pay £65 to Hiscox for twice as much cover (£100k) but it doesn't cover the tax due.

Tricky one given the tiny risk of a successful IR35 investigation ... maybe £100k of cover is enough to make them think twice ...

[LondonManc]

Absolutely this.

I was over 2 months late with my VAT, once, after rather ambitiously sending the cheque from India .

I called them on my return, they were very understanding and helpful.

Really

Also agree, get the insurance first

+1 for ringing them.

I had an issue about five years ago where either a payment or return was missed. I can't remember the details now but if you ring up and show that you are keen to pay, then they'll meet you halfway and be reasonable and understanding. It's the BS merchants that they have little time for but if you explain that it's an honest mistake and you're keen to put it right, they'll appreciate that you've rung up for help.

[northernladuk]

I've got TLC35 from QDOS as well. Never needed to claim it though tbh.

If you are going to take it you could use the link below or quote QCL57133

www.qdoscontractor.com/code/QCL57133

It will make lots of fluffy bunnies very happy. TYIA

[Crossroads]

TLC35 or the more basic Tax Enquiry insurance. If you think there is any scope of an IR35 investigation then it would make sense to go with TLC35, which includes the basic cover.

From personal experience I can recommend QDOS. I had a similar episode to yourself, except no accountant involved. A few years ago I made a couple of unexplained omissions on my SATR that triggered an enquiry. The sums involved were small, and my only defence was that I could only attribute it to not having my eye on the ball at the time due to personal circumstances. I even had all the relevant paperwork and figures carefully recorded and files with other data for the same return.

QDOS stepped in and advised me what to do, handled all correspondence and got me the most satisfactory outcome possible.

[SandyD]

She's simply saying buy insurance asap and given you 3 organisations - IPSE, QDOS and FSB - who sell the insurance you need plus ask your accountant if they sell cover.

Thanks Sue, sorry I missed that cuz I was in a hurry, appreciate you taking the time to reply

No another stupid question, at Qdos is this the Tax Liability Cover (TLC35) that am after?

[SandyD]

No my accountant is an individual not a large accounting company. Am looking to move now.

[Alan @ BroomeAffinity]

You might find your accountant has a group scheme that ALL clients are covered by. That's what we have. I think given he/she made the errors in the first place you'd get invited on foc.

[SueEllen]

Thanks Jessica, not sure from the above if you are recommending Qudos or not? I have my Indemnity and employee insuranc with them, so it would be easy to have it with them, but not sure if I should join IPSE as well? I prefer not to do both

She's simply saying buy insurance asap and given you 3 organisations - IPSE, QDOS and FSB - who sell the insurance you need plus ask your accountant if they sell cover.

[MrMarkyMark]

Bizarrely, this is the time to contact HMRC and ask for their help. This is a recent problem for you and should be pretty easy to clear up.

I'd also join IPSE, first, just in case.

Absolutely this.

I was over 2 months late with my VAT, once, after rather ambitiously sending the cheque from India .

I called them on my return, they were very understanding and helpful.

Really

Also agree, get the insurance first

[SandyD]

Thanks Jessica, not sure from the above if you are recommending Qudos or not? I have my Indemnity and employee insuranc with them, so it would be easy to have it with them, but not sure if I should join IPSE as well? I prefer not to do both

[Jessica@WhiteFieldTax]

Most insurances work on a claims notified basis.

So if no enquiry has been notified yet, get yourself insured ASAP.

Ask your accountant if they have a scheme, as that would guarantee covering you for their work, and probably no declaration necessary about your thinking an enquiry may be imminent. If not Qdos, IPSE, FSB, etc - if there is just a knowledge of a possible problem then you shouldn't have difficulty in getting cover.

I remember a case I had about a decade ago, a little more.

Day 1 HMRC opened enquiry and send letters by second class post
Day 3 - 10am client faxed in an application for insurance, routine as it was renewal time
Day 3 - 10:30 post arrived with letters from HMRC opening enquiry
Day 3 - 11am insurers confirmed covered

That was "Old Qdos" pre the Taxwise takeover.

[SandyD]

Would joining IPSE work now after I had a few letters saying there were errors in my tax submitted by the accountant (Personal and PAYE) the errors were only a few hundreds so not a huge sum at all which has been settled already with HMRC. Could they use the fact I got such letters to say I knew I maybe investigated and therefore may not support the claim?