Professional Fee Protection is a optional scheme to cover accountancy fees for tax enquiries and disputes.
The Importance of Cover
HMRC has wide ranging inspection powers across all taxes. No reasons have to be given for opening enquiries and often they can be triggered for no apparent reason.
Some of the risks faced are:
- Full HMRC enquiries into accounts or returns – companies and individual taxpayers – including a small number of random enquiries
- Enquiries arising from HMRC “task forces” in specific sectors or area
- “Aspect” enquiries into part of a return
- Disputes from VAT and PAYE inspections
- IR35 disputes
- ‘Interventions’ – HMRCs powers to inspect records and businesses outside of traditional enquiries
- Cross tax enquiries – where HMRC looks at VAT, Income Tax, PAYE and Corporation Tax together
- Surprise visits – HMRC can visit business premises to review records, with no prior arrangement
- HMRC intelligence, eg HMRC targeting credit card companies to supply details of all merchants, ebay to provide details of traders and similar
Even if HMRC find nothing to assess, the fees to defend such enquiries and reviews can be substantial; because of their unpredictability our fixed fee agreements do not cover Tax Disputes.
Whitefield Professional Fee Protection Scheme
In conjunction with AbbeyTax (a insurer and adviser) we offer a Fee Protection Service (previously known as Tax Enquiry Insurance) to cover our fees, which would otherwise be payable by you, as the client; participating clients have cover for up up to £125,000 of our fees or those of an Abbey approved consultant for the following events:
- Attendance at any face-to-face meeting with or dealing with any enquiry correspondence from HMRC
- Income & Corporation Tax Self Assessment Full & Aspect and Schedule 36 Enquiries
- Business Record Checks, VAT & Employer Compliance inspections (the actual meeting even prior to any possible disputes) and any resulting disputes (for example PAYE/P11D/P9D/NIC/IR35/CIS)
Some costs are not covered by this service, notably the following:
- Outstanding taxes, fines, penalties, interest or any amounts due to HMRC
- Pre-existing enquiries or disputes
- Claims arising from tax returns submitted outside statutory time limits i.e. late returns
- The defence of criminal prosecutions and investigations
- Routine Compliance work i.e. fees incurred in respect of preparing records for a PAYE or VAT inspection – the actual inspection, and any dispute arising from it, are covered
There is no excess payable, so full cover exists on all claims.
For Companies and Partnerships there is automatic private individual cover for all directors or partners and their spouses for their Personal tax returns (as long as we are the Appointed Tax Agent and any other income is less than £15k pa for Self Employment or £50k pa for rentals.
As a further service enhancement, AbbeyTax include a direct access Employment Law and Health & Safety Legislation helpline service – this is vital in order to help protect businesses from unwanted costs or litigation in these complex affairs.
The 2018 scheme runs from 1st January 2018 to 31 December 2018 and the annual service charge is set out below.
To join the scheme, please complete the application form online, using the link at the bottom of the page.
Premiums – including VAT
- £50 Individual Tax Payers including Sole Traders with turnover of less than £15k (not partnerships or companies), and landlords with income of less than £50k
- £130 Sole Traders with turnover over £15k, and Landlords with income over £50k (also directors and partners not covered under the Company/Partnership premium)
- £155 Companies, including PSCs, partnerships and LLPs (includes Partners/Directors with Self Employed income below £15k and rental income below £50k
A VAT receipt will be provided once we receive your remittance.
If you are joining after 1 January then please be aware the premium is for the remainder of the calendar year with optional renewal on 1 January 2019.
If you have any further questions relating to this scheme, please get in touch.
The service is, of course, not compulsory but should you decide not to take advantage of this, you will be “self insured” and fully liable for all professional fees incurred in defence of any enquiry.
Applying for Cover
If you wish to pay by cheque, please print off a form from the above link and post it to us with a cheque payable to “Whitefield Tax”
Important – we are sorry, but we cannot accept payment by Bank Transfer for this cover. Please do not pay by Bank Transfer as the amount you send will not be allocated correctly to your cover.
There are other Fee Protection news stories and comment on our site: see them all here
- Professional Fee Protection Scheme – 2017 renewals 03/01/2017
- Is your repayment credible? 09/03/2016
- HMRC and Personal Service Obligations 10/12/2013
- Online and Paypal option for Professional Fee Protection Scheme renewals 06/12/2013
- Professional Fee Protection Renewal 05/12/2013
- HMRC Rental Property Campaign 18/11/2013
- HMRC direct selling anti avoidance campaign 25/01/2013
- Professional Fee Protection Renewal 06/11/2012
- HMRC’s "Taxforces" Hit The Road 11/11/2011
- HMRC Business Record Checks 24/10/2011
- Business Record Checks and Fee Protection 14/02/2011
- IR35 Contract Reviews 07/10/2009