Question about PCG

[mrdavies]

Hi all,

I am a PCG Plus member and as such enjoy some wonderful benefits Should I stop contracting, wind up my Ltd with the help/advice of my accountant and then not renew my membership with PCG when the time comes (as it won't be needed) will the Tax Investigation insurance still cover me down the line should hector decide to knock on my door? Or is it only valid so long as I maintain my subscription?

Cheers

[malvolio]

Good question, and not one I know the answer to. I doubt you are the first to raise it though!

Will you ask Kevin or shall I?

Of course you can't close your company without HMRC's agreement that its affairs are totally in order, so it would be hard for them to raise an IR35 investigation once that had been done. So I suspect the question is moot.

[mrdavies]

Be my guest....

[malvolio]

OK, done.

Coverage laspes with the membership. The general advice is to renew for the year that the company closedown is taking place, in case Hector finds something he wants to investigate; that way you still have the cover in place. Once the comany is closed, they can't touch you anyway (well, not without a hell of a fight!).

So you may have to lay out £210 for a year longer than strictly necessary, but it's not a bad investment for peace of mind.

[turbo]

Good question.... thanks for investigating malvolio.

I guess something similar applies to other insurances taken out.

turbo

[mrdavies]

Hmm not ideal but like you say, can't touch you once you've closed down the ltd co without some serious fight.

Cheers for checking it out anyway

edit: Actually this could be tricky, say I initiate the process of closing the ltd company down in September (which i have been told takes a few months) yet the PCG membership is up for renewal in January, I can't renew for the company as it will hopefully no longer be registered.... ideas?

[malvolio]

The word is to give yourself roughly six months cover, since that is usually how long it takes. Depends how your dates align, really.

But I just heard of someone who was doing the same thing, and Hector has kicked off an enquiry after examining his expenses as part of the company close down. Without the insurance - still in force becuase he took the extra year's membership - he would now be facing around £10k in professional fees...

At the end of the day, you can keep even basic membership for £120 and have sufficient cover: offset that against a potential £10k loss.