Fee Protection: What is it and why do you need it?
Fee Protection insurance covers you for the costs associated with an HMRC investigation, so that you aren’t left with a huge bill for accountancy fees associated with fighting your claim.
You might think that since you know you aren’t cheating HMRC, you don’t need to worry about being investigated. Unfortunately, that isn’t the case, and you could find yourself subject to an investigation at random even if you haven’t done anything wrong.
As part of the investigation your accountant will need to spend considerable time collating and presenting evidence which challenges HMRC’s assertions. They will need to go over the details of HMRC’s assumptions, in order to ensure that your case is handled fairly and on the correct basis. Even when you win your case, you will still be liable for the accountancy fees, which due to the amount of time involved are likely to be significant. This is where Fee Protection insurance will be a real benefit to you, as it costs far less than the average cost of dealing with an HMRC investigation. Our E R Grove Fee Protection package gives you up to £125,000 worth of cover.
You might still be thinking that it’s a risk worth taking to just hope you won’t be investigated, rather than paying for insurance that you might never need. However, our E R Grove Fee Protection package actually offers other policy benefits which you can access throughout the life of the policy, not just in the event of an investigation.
Fee Protection clients have access to a Free Legal Helpline which gives access to a team of qualified solicitors and barristers 24 hours a day, 365 days a year. They will provide up-to-date advice and support on any query to do with employment law, health and safety, or commercial law query. This high-value service is in itself a real benefit of the package, even if HMRC never come calling!
To purchase our Fee Protection insurance, contact your accountant today. It might be the best financial decision you ever make!