MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
Just got a letter from my Accountant reminding me i haven't yet purchased tax investigation insurance and that they 'strongly advise me to do so now when the threat of tax investiation by HMR&C is growing'.
I'm a very small scale sole trader, started in April 08. Income for that period has been low. I've submitted my SelfAssessment for last year through my Accountant on time, and I've kept all my numbers nicely in order.
So, is it worth the £35 for the cover? Or is the threat not big enough to bother?
My accountant offered it but when I queried it he said I wasn't a high risk for investigation - most of my work is for big companies or councils, who pay by cheque, so there isn't much scope for fiddling anything. If you have the sort of business that takes a lot of cash, like a shop or restaurant they are more likely to investigate. As a result I haven't taken the insurance up and [touch wood] haven't needed it. If you are a small outfit and everything is in order an investigation shouldn't be too bad, though a friend of mine was done and it wasn't nice - he reckoned the accountants bill for helping with it was about three times the usual annual fee. £35 doesn't sound massive, I think I was quoted about £200, usual accountants fee for doing the year end books etc. is £750
We joined the fsb all part of the membership.
£35 was the quote price for the insurance. the accountant's fee for doing the year end books comes on top of that.