What will best practice around PI insurance look like when Making Tax Digital for Income Tax is introduced? Robyn Milstead asked an expert.
With Making Tax Digital for Income Tax Self Assessment (MTD IT) on the horizon, many accountants and tax advisers are understandably nervous. Questions are flying around about client approvals, submission responsibilities and – crucially – how all this ties into Professional Indemnity (PI) insurance.
I had the privilege of chatting through my own concerns with Sam Cox of Qdos Insurance, to explore what best practice really looks like in this new compliance landscape — and how PI cover fits into it all.
One of the reasons I spoke to Sam was because insurers haven’t had much to say about MTD IT so far. Sam, however, was able to reassure me that that’s not a sign they’re ignoring it – it’s just how they operate.
Insurers tend to be reactive, not proactive. They wait to see how new rules play out and where claims emerge before they start issuing guidance or adjusting terms.
Right now, MTD IT is seen as low risk from an insurance standpoint. It’s a compliance exercise, not an advice-driven one. Even so this still feels like a scary new world… but there are some points from our conversation which I hope will elevate some of the fears.
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