Taxwise Fee Protection

[hdsbob]

Our accountant has suggested that this scheme is a good idea, but being a bit cynical of insurance schemes such as this I am not so sure. Seems a good idea on face value, but in your "hour of need" will it deliver?

Has anyone claimed on the policy and if so, did the policy pay all the fees without any significant problems? Or did it leave you out of pocket in expenses you thought would be covered?

 

[Zeno]

An old chestnut with no clear cut answer. Most accountants recommend it as it can be mutually beneficial - we can argue cases to the bitter end and reach smaller settlements if we know that you are not picking up the tab for it.

I have never encountered much problems in claiming before but I suppose if every insurer paid out on every claim they would be bankrupt in no time.

 

[hdsbob]

Thanks for the reply Zeno. It sounds like you are an accountant and what you say sounds fine in principle, but doesn't really deal my questions.

I am really interested to hear from people how have actually had a HMRC enquiry or even an investigation and claimed on this policy. What was their experience? Did it pay all the fees in full, quickly and without hassle or was there hidden get out clauses that left them out of pocket?

Did they have to pay the accountant first and then claim? Or did the accountant make the claim on their behalf?

We have paid for employment advisors before and when it came to a tribunal situation they weren't very good. Result - us out of pocket. I have personally paid for legal cover insurance in the past and again, when it came to actually use it, it was a waste of money. Result - me out of pocket.

Unfortunalty, there is loads of oversold insurance protection around these days. Worst of all, it is astonishing how most of them come from so called reputable, household name corporate companies! I feel a rant coming on so I had better go and watch the telly. No that's not a good idea as the budget's on and that will start me off on another rant!!!!

 

[Zeno]

Most of the tax fee protection schemes are much the same in how they operate. The usual practice is that they will pay your accountant's fees directly. It is an ongoing process through out the enquiry.

I have never come across any major hassles and they have always paid up quickly ut to be honest it is not something I claim often. Once or twice a year at most.

Ultimately, it is like all insurances - a gamble on the worst happening. It is usually said that it ony takes one enquiry in 10 years or so to make it worth your while.