It is time for the annual renewal of our Professional Fee Protection Scheme, and we invite you to either renew your cover, or consider joining the scheme, as appropriate. The new scheme year begins on 1 January 2024, and previous cover is not automatically renewed.
Full information is on our website and a summary is below.
If you know you want to renew / take up cover, then here is the quick link to the application form and card payment facility
Cover is only available to existing clients of our practice.
Premiums – including VAT – there is a small change for the first time in six years, around 4%
- £51.60 (£43 plus vat) Individual Taxpayers including Sole Traders with turnover of less than £15k/year (not partnerships or companies), and landlords with rental income of less than £50k/year.
- £134.40 (£122 plus vat) Sole Traders with turnover over £15k, and Landlords with rental income over £50k (also directors and partners not covered under the Company/Partnership premium.
- £160.80 (£134 plus vat) Companies, including Personal Service Companies, partnerships and LLPs – this includes personal cover for Partners/Directors provided any personal Self-Employed income and Rental income is below £15k/year and £50k/year.
For comparison the vat inclusive prices were £50, £130 ad £155 for the last five years.
Summary of Cover
Up to £125,000 of professional fees for tax enquiries and tax disputes, including VAT, PAYE and IR35. The full details of cover and exclusions is on our website, link above.
Do I need this cover?
It’s difficult to answer that question. Professionally, we have an obligation to make you aware of the availability of Fee Protection.
HMRC have wide ranging powers of enquiry, and how much they are exercised seems to go in fits and starts. Our view is this:
- For PSCs / Contractors / Companies operating with IR35 risks this cover, or something similar from another source, is strongly recommended.
- For most other limited companies, the cover is sensible, particularly if VAT registered, PAYE registered or both. VAT and PAYE disputes can become intractable quite easily.
- For sole traders, including most of our Yoga Tax clients, it’s probably a matter of personal attitude to risk v cost.
How much does a typical tax enquiry cost fee wise? Well, as a firm over the years our fees have ranged between £500 +vat at the lowest to upward of £35,000 + vat, the latter being a complex serious civil tax fraud case, and the former a very simple case. Perhaps £1,000 to £2,000 plus vat typically.
Taking cover up
Unfortunately, we cannot take payment by bank transfer or over the phone in this instance.
Do let us know if there is anything you are unsure about.