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

[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.

[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.

[kaiser78]

So that just leaves unrestricted PEI, agency default cover, sickness cover, lost days for admin cover, discount life insurance, discounted pension access, discounted training and loads of supporting material and other information then...

Yes, thank you. I meant that the jury service element (only) then goes away

[kaiser78]

by serving a 5 year prison sentence?

Nope, all above board.

[malvolio]

And you can also asked to be made exempt from being called up for jury service (ever), so this one then goes away.

So that just leaves unrestricted PEI, agency default cover, sickness cover, lost days for admin cover, discount life insurance, discounted pension access, discounted training and loads of supporting material and other information then...

[pr1]

And you can also asked to be made exempt from being called up for jury service (ever), so this one then goes away.

by serving a 5 year prison sentence?

[kaiser78]

You have a 35% risk of being called up for jury service in England and Wales over your lifetime and about half that of actually having to serve on a jury for 2 weeks.

So like with everything it is still a risk assessment.

And you can also asked to be made exempt from being called up for jury service (ever), so this one then goes away.

[kaiser78]

FFS, get a life. Alright, I will never ask a single question ever again! Just rely on old post from years ago. Are you happy now???

There was a long thread from about 6 months ago that delved deeply into this and is actually worth reading through. Just trying to help like.

[SueEllen]

True but I joined IPSE+ within a couple of months of starting after being recommended by another contractor - 2 months later I was called up for jury service (which IPSE+ cover lost billing time up to 2 weeks) so it paid for itself for the next 5 years straight away

You have a 35% risk of being called up for jury service in England and Wales over your lifetime and about half that of actually having to serve on a jury for 2 weeks.

So like with everything it is still a risk assessment.

[northernladuk]

True but I joined IPSE+ within a couple of months of starting after being recommended by another contractor - 2 months later I was called up for jury service (which IPSE+ cover lost billing time up to 2 weeks) so it paid for itself for the next 5 years straight away

Ohh. I think that's the first time I've heard that and great to hear someone has used it like that. I do know one contractor that got called up and didn't have it. He got out of it though but signed up straight away.

Just the number of people we see on here that have had contracts pulled by agents and could have claimed on the business interruption makes it a no brainer on top of everything else. I believe PC has had some dollah out of that.

[pr1]

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.

True but I joined IPSE+ within a couple of months of starting after being recommended by another contractor - 2 months later I was called up for jury service (which IPSE+ cover lost billing time up to 2 weeks) so it paid for itself for the next 5 years straight away

[nc1]

Thank you all for your help

[SueEllen]

FFS, get a life. Alright, I will never ask a single question ever again! Just rely on old post from years ago. Are you happy now???

It is not about you asking questions it is about you hijacking other's threads - in all forums I used and have used this is bad netiquette.

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.

[Fred Bloggs]

Let me hijack the thread. I'm looking at the insurance options as well and I wonder is it worthed to have TLC in your first year of your company formation? QDOS Tax Liability Cover (TLC35) with limit of £25k costs £199.00

No. A tax investigation is most likely to be triggered by a compliance visit or another tax related query from HMRC. In your first year there are no returns to query against.

[atanas]

Not you again... You don't need to Hijack it. Just read it and the links attached. Your constant demands for answers is getting a bit long in the tooth.

FFS, get a life. Alright, I will never ask a single question ever again! Just rely on old post from years ago. Are you happy now???