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  • #987028
    Triple J
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    Hi all, I have been looking for a website like to finally get some answers as I am really confused now as to what type of insurance, registration I need.

    So here goes. I’ve just started my handyman business after being out of work for almost 9 months to date. I have read here about liability insurance and I do have a few quotes on that already. I also have quotes for my tools so I thought I got everything covered. Then one insurance company suggested “Tax Liability insurance”(?) He was trying to explain this to me but could not quite understood him. Do I really need this?
    My other question is I will be buying a cheapy ute. Should I register it as business and if I don’t what are the implications?

    thanking you all in advance.
    Jo

    #1160843
    Anonymous
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    Hi Jo,

    Congratulations on deciding to go it alone :)

    We have some very experienced insurance brokers around here, so I’m sure there’ll be some handy advice posted for you in the next little while.

    In the meantime, thank you for joining Flying Solo – it’s great to have you here.
    Jayne

    #1160844
    alliedib
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    Triple J, post: 185612 wrote:
    Then one insurance company suggested “Tax Liability insurance”(?) He was trying to explain this to me but could not quite understood him. Do I really need this?

    Hi Jo,

    Good to see you are getting your insurances in order…

    It’s unusual for insurers that are in the trades space to be offering Tax Liability cover – this is more relevant to Mergers & Acquisitions. It basically covers exposures arising from the tax treatment of an activity or where there is uncertainty as to how tax laws apply.

    I think they may be referring to Tax Audit cover? This basically covers you for accountant’s fees incurred in preparing the necessary documentation should you be audited by the ATO. It won’t cover you in certain instances eg if your industry has been identified by the ATO as a possible audit target, nor will it cover any tax liabilities that are discovered.

    Do you need it? If you are concerned about being about being audited you might consider it. I don’t know your circumstances so I can’t provide you with specific advice (not on here anyway).

    If you need any further help feel free to ask.

    Regards,

    Mark

    #1160845
    Triple J
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    Thanks for the warm welcome guys and for prompt replies.

    I was told that handyman is a common target by ATO not sure if its true though. But due to financial reasons im not sure if i can afford the “tax audit” insuramce at this stage, right now every cents counts. Also I still have to buy my work ute and some tools. But definitely will be getting the other two insurance mentioned. But i will speak to my accountant for some advice.

    Thank you again.
    Jo

    #1160846
    alliedib
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    No worries Jo, happy to help anyone who is entering the world of FS.

    Your accountant may offer you something similar – I know there are insurers which have appointed accountants as distributors to sell this type of product (as additional revenue stream) – I am not sure of the logistics though (ie who provides the advice on the product – the accountant may not be licensed to do so).

    If you would like me to have a look at a trades package for your liability / tools / vehicle etc feel free to give me a call – I can suggest why some insurers are better than others for particular risk and provide access to some companies that don’t deal with the general public.

    Good luck with your new adventure!

    Regards,

    Mark

    #1160847
    Collins Insurance
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    • Total posts: 32
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    Triple J, post: 185612 wrote:
    Hi all, I have been looking for a website like to finally get some answers as I am really confused now as to what type of insurance, registration I need.

    So here goes. I’ve just started my handyman business after being out of work for almost 9 months to date. I have read here about liability insurance and I do have a few quotes on that already. I also have quotes for my tools so I thought I got everything covered. Then one insurance company suggested “Tax Liability insurance”(?) He was trying to explain this to me but could not quite understood him. Do I really need this?
    My other question is I will be buying a cheapy ute. Should I register it as business and if I don’t what are the implications?

    thanking you all in advance.
    Jo

    Many like you have same questions when starting up business. Some brokers, insurance companies, accountants just want to push sales by recommending all sorts of insurance cover and make it sounds so relevant.

    There are many risks facing a business, some worth to insure, some have other means of control apart from insurance, some have to wait till your business starts making money and some not worth insuring.

    As for the ute registration, that’s more of a tax and account issue. Not an issue for insurance.

    Cheers and good luck,

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