AAT Additions: Fee protection

deanshepherd

Just had a letter from AAT with details of this latest addition to er... AAT Additions.

Does anyone use this? (PFP's scheme as oppose to fee protection in general) Any thoughts?

Poodle

Hi Dean,

It was suggested in an earlier thread that the AAT could do this for us MIP's.

(Big Brother:001_smile:)

I tried to get some clients onto a scheme earlier this year but had no takers, not sure that I can spare the time at this time of the year to take this on board.

Will put in pending for next year

Poodle

PaulPSB

I've been using PFP for clients for a good few years without any problems.

Contract is between Client and PFP and when an enquiry starts you have a better chance of collecting your fees for work done. Also the client doesn't have to worry about your fees which is a big help.

Nowadays more general insurance policies are including some sort of Tax Investigation cover and FSB offer it within their membership fee so not as many clients use the PFP scheme as they did years ago.

Paul :001_smile:

deanshepherd

How much does it cost Paul?

Given that I have had only 1 enquiry in the fours years since I set up my own practice, and that was resolved without any further tax payable after about 5 hours of my time, I would never consider insuring my practice as a whole.

I would consider letting my clients know about a particular scheme if I thought it was good value for money and then leave the decision to them.

Currently I don't offer it at all but do mention, in my engagement letter, that these policies do exist and are available in the insurance market.

Dean

I've added a 'tag' so people can find it when they eventually get round to that "pending" list in, errm, June 2015! :tongue_smilie:

Regards

Dean

PaulPSB

deanshepherd wrote: »

How much does it cost Paul?

Given that I have had only 1 enquiry in the fours years since I set up my own practice, and that was resolved without any further tax payable after about 5 hours of my time, I would never consider insuring my practice as a whole.

I would consider letting my clients know about a particular scheme if I thought it was good value for money and then leave the decision to them.

Currently I don't offer it at all but do mention, in my engagement letter, that these policies do exist and are available in the insurance market.

I agree - I didn't want to insure the whole firm either so I opted for giving details of the PFP scheme to all clients and let them choose.
If they go for it then a small business is covered for about £125 pa and this covers up to £65,000 of professional fees. Directors can add personal Tax cover for around £60.

It's worked well on the 3 or 4 occasions its been called on over the years :001_smile:

JodieR

I contacted PHP in Feb/March of this year (or even last year perhaps) and they wanted me to send them a list of all my clients' names and addresses for them to send their 'bumf' to. I didn't like the way they worded their letter, and wasn't very comfortable with handing over all that personal information, so instead they sent me a pack of leaflets which I included with the letter I sent to clients in April asking them for their tax return info. I included a paragraph in my letter about it, basically just pointing out that if they do get an enquiry that it may result in extra fees which they can be insured against, and PHP are one such company which offer this insurance. When I take on new clients now I send out a leaflet with their engagement letter.
Some clients did seem interested in it, but I don't actually know if anyone did take it out. But at least I've CMA now!!

claudialowe

I started using PFP this year - I had a very small take up though - and not had to call on the insurance yet :thumbup1:

I did it on the basis that I wanted my clients to know that there was something out there, but I haven't been at all pushy over it.

Claudia