FAQs - Frequently Asked Question about FeeProtect

Is Tax Investigation Insurance Right for me?

If I purchase today when will the cover begin?

If you purchase today, cover can begin tomorrow or up to 30 days in the future.  Cover is subject to insurer’s accepting your application and us receiving your full payment.  Note that the Policy will not cover claims that arise directly from facts and events that exist prior to inception which are likely to cause a claim against the Policy.  Therefore if you are already subject to an HMRC enquiry or dispute you should wait for the enquiry to conclude before purchasing cover as the ongoing enquiry and any further enquiries that arise before that enquiry has concluded will not be covered by this Policy.    

Will I receive paper copies of my policy documents?

No, but we can provide this on request. All the policy information is included within the email you receive once the policy application has been accepted. Also within this email are links to PDF downloads of your policy information which you can save and print off yourself if that is preferable. Ultimately we feel it's quicker, easier and saves trees.

Who is the underwriter of the policy?

The underwriter for FeeProtect is ARAG PLC and is part of the ARAG Group, the largest family-owned enterprise in the German insurance industry, with a presence in 18 countries. Founded in 1935, on the principle that every citizen should be able to assert their legal rights, ARAG now employs 3,700 people around the world and generates premium income in excess of €1.65 billion. Boasting an impressive Solvency II ratio of 199%, ARAG has also proved extremely popular with UK clients since our 2006 market entry, picking up a string of awards, including Legal Expenses Team of the Year at the Underwriting Service Awards, four times in succession and cementing our place as a market leading legal expenses insurer.

Does the Policy cover VAT and PAYE Compliance Visits?

The Policy will cover fees incurred dealing with a VAT or PAYE Compliance visit where it is necessary for your accountant to attend.  It will not cover fees incurred by your accountant doing work that you could do to the same level.  The Policy will also cover fees incurred dealing with queries following the visit or disputing HMRC’s findings, provided there are grounds for dispute.

If I insure a business will the Policy also cover the Directors and Partners?

The business policy also automatically covers the personal tax returns of partners or directors of the business. So where a director or partner has self employment or rental income that is not from the insured business, they will still automatically be covered by the business premium (no additional premium will be due). However, if income is derived from any other business interests (sole trader, partnership or limited company) this will require separate cover for that business.

Does the Policy cover Business Record Checks?

As with VAT and PAYE Compliance visits the Policy will cover fees incurred by your accountant dealing with Business Record Checks where it is necessary for your accountant to attend.  It will not cover fees incurred by your accountant doing work that you could do to the same standard as your accountant.  The Policy will also cover fees incurred dealing with any enquiries that arise following the check or disputing HMRC’s findings, provided there are grounds for dispute. 

Does the Policy cover the cost of an external specialist (other than my accountant) representing me in the event of an enquiry?

Where appropriate the Policy will cover fees incurred by an external specialist. Although note that the hourly rate in respect of such a specialist will be limited to hourly rate agreed under the Policy.

How do I make a claim against the Policy?

Please send an email to feeprotect@straightsolutions.co.uk and reference your policy number. You should notify us of the claim as soon as you become aware of an enquiry and prior to your accountant incurring any fees dealing with the enquiry.  We will then liaise directly with your accountant in respect of approving fees and settling invoices.  Note that all fees incurred by your accountant must be approved by us in advance of them undertaking the work.  Essentially we require an estimate for the cost of work in advance, in the same way that you would.

Does the Policy cover Aspect Enquiries (as well as full enquiries)?

Yes the Policy will cover an enquiry that looks at all of your books and records (a ‘Full Enquiry’) or just a specific aspect of your affairs (an ‘Aspect Enquiry’).

Does any Excess apply to the Policy?

There is no Policy Excess.

What is the maximum amount the Policy will pay out in the event of a claim?

The Limit of Indemnity is £100k, so the Policy will cover fees incurred up to this amount (subject to the Policy Terms and Conditions). Within this the Policy will pay up to a maximum of £180 per hour in respect of the appointed advisors hourly charge out rate. In the event of a HMRC site visit, there is a limit of £1,000 towards the appointed advisors costs in attending and representing you in person.

Will the Policy cover costs incurred disputing HMRC’s findings at a Tribunal?

The Policy will cover fees incurred defending you at a Tribunal, provided there is a reasonable chance of you succeeding. More specifically the Policy won’t cover fees incurred disputing HMRC’s findings where there is little or no chance of succeeding and so where commercially it makes more sense for you to pay any additional tax rather than incur further costs at the Tribunal.

What is the difference between a Private Individual and Sole Trader?

A private individual is somebody who has a source of income (rental / investments) but is not actually running a business. For example, a private landlord who is renting out a house and generating income. A sole trader will actually be a running their own business. It is important that you select the correct type of business when you buy Fee Protection Insurance.

What is Shopify and why am I taken to their page during checkout?

Shopify is an e-commerce platform on which we host our site and is used by thousands of businesses throughout the world. It's a secure platform that has the highest security standards for banking and credit card transactions.

I'm an accountant, can I earn commission by selling this policy to my clients?

Unfortunately not. FeeProtect.com sells direct to policy holders and does not offer commission on a re-selling basis.