Comments on: Spot checks by tax inspectors

By: A.R.

A.R. — Thu, 12 Jan 2012 20:29:22 +0000

Are accountants also authorised to do spot checks on their clients? like for example check books and if the cash in the cash till to check if it matches with the cash book??? or only tax inspectors have that authority? Isn’t it going against people rights? Thanks for any advice.

By: Peter Dalton

Peter Dalton — Mon, 11 Apr 2011 15:06:01 +0000

Accountants are increasingly offering fee protection insurance (in one form or another). We offer a service run by CCH Wolters Kluwer where all clients can be covered, and the average sole trader fee is around £50 per annum (limited companies a little higher, as the directors are also covered).
Depending on the extent of the enquiry, fees resulting from an HMRC Investigation/Enquiry can run into many £000s, so in many ways accountants that do not offer the fee insurance are doing their clients a dis-service. However, like all insurances, if you need it you are pleased that you have it, if you don’t need it, it either provides peace of mind or is a waste of money (depending on how you measure things).

By: Hazel Edmunds

Hazel Edmunds — Tue, 05 Apr 2011 16:32:08 +0000

I’m not normally in the habit of recommending anyone to anyone, if you get my drift. Especially when I don’t know you at all but …
The Accounting Bureau (UK) Ltd based in Hemel Hempstead has insurance for all its clients to cover not only the costs of the client but of staff from ABUK attending during HMRC’s visitation. I understand that this policy was not horrendously expensive and you might like to suggest a similar scheme to your accountant.