Resources

What is Fee Protection Insurance?

Fee Protection Insurance covers accountant's costs in the event of a tax enquiry.

What are the different schemes?

The two main schemes are Group or Practice schemes where the accountant is insured for all or a section of his client base, and Client Decide schemes where the client is insured.

What scheme is best for me?

Broadly speaking, the Client Decide policies tend to suit accountants aiming to give their clients the option of fee protection insurance but with minimal involvement themselves.

What levels of cover are there for my clients?

Broadly speaking, the Client Decide policies tend to suit accountants aiming to give their clients the option of fee protection insurance but with minimal involvement themselves.

The Practice and Group schemes are beneficial to those practices aiming to be actively involved in the management of the scheme.

Both schemes can generate valuable extra revenue for the practice, and premium levels of protection for your clients. They are also inherently flexible and can be tailored to your practice's specific needs - contact us to find out more, or to request a visit from one of our specialist regional Account Managers.

What types of enquiry are covered?

With all our policies, the limit of indemnity for any one claim is £75,000, and depending on the policy we can cover Full and Aspect Income Tax Enquiries, Full and Aspect Corporation Tax Enquiries, VAT disputes, Employer compliance disputes (PAYE/ P11D / NIC) and IR35 disputes.

Our business cover can offer both full and aspect enquiry cover.

Our personal cover provides aspect cover as standard; this will include the personal tax aspects of a sole trader's tax return.

What is the limit of indemnity?

The maximum limit of indemnity is £75,000

How flexible can the schemes be?

PFP is well-renowned for taking one of the most flexible approaches on the market. Any part of our policies can be varied to suit the practice, subject to regulatory status.

What else comes with the fee protection insurance?

Once you have chosen your policy, we can provide complimentary support in various ways. This can include administrative and marketing support, access to a 24 hour business legal helpline and access to independent experts.

What support will I receive?

PFP can provide as much or as little support as you require.

• We supply high-quality marketing materials tailored to your client
• We can carry out all administration, including initial applications, renewals and reminders
• We provide a legal helpline available 24/7, and the legal consultants will enter into correspondence where necessary
• We give access to external independent consultancy, as well as our in-house Claims Department

Do I need to be FSA authorised or have a DPB licence?

No, the only scheme which requires FSA authorisation is our Group Cover scheme. Read more about Fee Protection and the FSA

For how long has PFP been providing fee protection insurance?

PFP has been insuring accountants against the risks of tax investigation since 1985, and we are known as one of the innovators of Fee Protection Insurance.

How do I make a claim?

Send an initial notification by first class post, fax, email or telephone.

When must claims be notified?

Claims must be notified within 30 days.

Are there any restrictions on the number of claims?

No.

When is authorisation given to carry out the work?

Authorisation is given at the outset within 48 hours of receipt of the claim form. This is usually given by fax and letter. We can also authorise fees over the telephone if necessary and will follow this up in writing.

What if the authorised fees are not sufficient?

We usually authorise time to enable the accountant to carry out the full enquiry in line with the fee estimate given in order to avoid the necessity to continually report back. However, you can ask for further fees to be authorised should you reach the agreed level.

Can the practice appoint specialists?

Specialists can be appointed as long as we give our prior authorisation. Please bear in mind we do have a panel of independent experts available.

What fees will be covered?

All reasonable costs will be covered. For example, we would cover travelling costs to clients. We would ask, however, that where travelling time is expected to take more than three hours we are consulted in advance.

Can the practice issue interim bills?

Interim fees are encouraged as and when you wish to raise them. We ask for a copy of correspondence, meeting notes etc. to be provided (but not reams of analysis paper or bank statements). We also need a copy of the fee note (addressed to the client) and the supporting time records.

When will fees be paid?

Fees will be settled within 14 days.

Who pays the VAT on the bill?

If the client can reclaim the VAT from HMRC then we ask them to pay the VAT. Otherwise we pay it.

What happens if the insured party becomes insolvent?

Unlike many other providers, PFP will continue to honour the contract and settle fees; ensuring that the accountant is not left writing off fees.