Do Your Clients Need Tax Investigation Protection? If you think your clients need tax investigation protection, you are not alone. Many accountants throughout the UK invest in this protection for their clients, or they encourage their clients to purchase this type of protection for themselves. While an individual can benefit from this type of protection it is most commonly used by businesses. What this type of protection does is pay you for the fees associated with handling tax investigations. For example, without protection, you would have to charge your client for the work that you do while handling his or her investigation. Since these investigations last for weeks, months, and even years, these fees can end up being quite high. This can put a financial strain on your client, and it can strain the relationship that you have with your client. When Youâ€™re Protected When you have tax investigation protection, an insurance provider will pay these fees, and this is a win-win situation. First, you get paid, and considering the amount of work that you are doing to settle the investigation, this is very important. Second, your client does not have to pay (or at least pay as much as they would have with the protection) the fees associated with the investigation. Sometimes these investigations simply happen. Most people think that there has to be a mistake or an attempt to hide something, but in some cases, the return can simply get pulled for an investigation even if everything is done correctly. That being said, an attempt to hide information or a mistake will also often lead to an investigation by HMRC. How Can I Provide This for my Clients? If you would like to offer this protection for your clients, you generally have two options. First, you can insure your practice. Second, you can offer the client the ability to insure him or herself. If you are interested in finding a good provider, you should contact a company called PFP or Professional Fee Protection. This UK based company was founded by accountants, and as a result, they understand you and what you do. They offer both client cover and practice cover, and there is a great deal of flexibility within these two options so that you can create a plan that works for you. If you prefer to be hands off, you can choose a client cover plan that is administered by PFP. You tell the client about the option, and PFP will contact the client and receive payment from the client. Then PFP will inform the accountant who has signed up for the coverage, and the accountant receives a commission for each client who signs up. In addition to this, PFP takes care of all of the paperwork.
In addition to this option, you can also choose a client cover plan that you administer, but you must be a DPD/Authorised accountant in order to do this. You also have the option to insure your practice. If you want to learn more about the tax investigation protection options that PFP has to offer, you should contact them today!