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Evan

Inland Revenue

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My accountant is pestering me to take out 'protection from inland revenue investigations insurance'. Does anyone know if this is a sensible move ?

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What is 'protection from inland revenue investigations insurance'.

thanks

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apparently the inland revenue are beginning to investigate people at random,including doctors.those picked have to pay the fees of the investigation

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Is it another money making agenda.

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If you have a bent accountactant then take out protection. However, if you have always declared all your income eg interest from savings, crem fees etc then there is no point in taking out protection!

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It may be important for the people who are locuming with a limited company. They tend to pay lower business rates while working with one employer. Inland revenue think of them as employed and ask them to pay higher tax rates.

If you do not have a limited company and paying your higher rate of tax, you do not need this insurance. My accountant was also asking me if I am interested. I found out that its worth taking if you plan for long term locum as your chances of being investigated under IR35 increases. otherwise its just a waste of money.

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I think I have been left behind. Imagine doctors talking about accountants. Tell me what does he do for you on a normal day without the intrusions of the Inland revenue. :o

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Thanks for the replies.

You haven't been left behind.I locumed, worked overseas, sold my flat and did some court reports and needed help with a tax return.Now I work in a substantive post but once you've done one return you have to do them every year.

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I have done income tax return twice in the past.But have been advised by the Inland Revenue

Office not to file any more tax returns and they gave me a special Tax code.I do not think if you file your returns once you have to do it always.It all depends on the circumstances.Please correct me if i am wrong.

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I have done income tax return twice in the past.But have been advised by the Inland Revenue

Office not to file any more tax returns and they  gave me a special Tax code.I do not think if you file your returns once  you have to do it always.It all depends on the circumstances.Please correct me if i am wrong.

I think that you're right, the same thing happened to me. File my returns twice, then I was given a new tax code and told not to file again.

Now my circumstances have changed, the house i bought several years ago I have put it up for rent and I know that I need to send in a tax return.......which I am not looking forward to. So I might just consider using an accountant to make sure that i being taxed at the appropriate level.

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I think anyone who is on higher tax range must file the return every year. Its because if they have any savings at all, they must be taxed at 40% while the tax deduction is only 22% by the banks. So if you dont file the return every year, you are illegally avoiding the tax.

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