Insurance Costs

[Ivor1]

Ok Im going ltd.

Had a look at 1stAccountancy and SJD website, do you know if there fees include the insurances I need ? If not whats the best place to get, Im read about the PCG package, would that cover what I need and what can I expect to cost ?

[Hex]

Insurance costs are usually on top of Accountants fees.

Different types of insurance you may need:

Legal Insurance/Tax investigation insurance. The PCG bundle some of this in with their membership. PCGPlus gives you extra insurance to pay for professionals to handle you in case of a PAYE investigation. Costs are on their site together with more explanation of the insurances. PCGPlus is around £260 per year.

Professional Indemnity Insurance. The PCG has a deal for its members on this as well through Randall Dorling. Costs about £200 per year.

Company Liability and Public Liability. Bundled in with the PI Insurance from PCG.

Obviously there are other places to purchase these insurances, but you may struggle to find cheaper prices.

[VectraMan]

PCGPlus gives you extra insurance to pay for professionals to handle you in case of a PAYE investigation. Costs are on their site together with more explanation of the insurances. PCGPlus is around £260 per year.

Is that worth having? I just went for PCG standard as it didn't seem worth worrying about a PAYE investigation when SJD do it all for me (and hopefully know what they're doing), and I don't have any employees other than myself. Or am I missing something there?

I also have the Randall Dorling PI/PL insurance.

You can treat it all as an expense of course.

[Hex]

Is that worth having? I just went for PCG standard as it didn't seem worth worrying about a PAYE investigation when SJD do it all for me (and hopefully know what they're doing), and I don't have any employees other than myself. Or am I missing something there?

As with all insurance, what you decide is worth having depends on your attitude to risk. I went for basic PCG membership to start with and then decided that for the extra that PCGPlus cost it was worth it for the peace of mind I got. As soon as I'm informed of a PAYE audit I have professional help in dealing with it. Given a PAYE audit can lead onto an IR35 investigation I thought that it was worth the cost.

PCGPlus also gives you Jury Service cover now. I recently managed to get out of Jury Service - I got the Jury Service "summons" within the first 4 weeks of me starting contracting. I don't think it'll be so easy for me to get out of it if they call me again next year, so the Jury Service insurance (which pays up to £300 per day) I also think is worth having.

[ASB]

Is that worth having? I just went for PCG standard as it didn't seem worth worrying about a PAYE investigation when SJD do it all for me (and hopefully know what they're doing), and I don't have any employees other than myself. Or am I missing something there?

I also have the Randall Dorling PI/PL insurance.

You can treat it all as an expense of course.

It's your choice (I never had the extra myself). But I think you may be missing something.

A PAYE investigation (compliance review) is the normal way of starting an IR35 trawl. So with the extra these costs are covered earlier. And they can be considerable. It will also normally become a personal investigation as well.

I can't remember when the insurance kicks in with standard membership. I think it is only when the decision thay you are caught by IR35 is made.

I endured an investigation in '95. Cost me 4k in fees.

[cojak]

Be aware that VAT investigation may also be the beginning of an IR35 investigation.

Two gentleman may come round to visit you these days rather than one and start asking all kinds of non-related VAT questions like "How do you bill your time?" and "are your contracts sequential or concurrent?".

That kind of thing....

[Ivor1]

So let me get this right I need both of the following insurances. And if I join the PCG I can get the lot for £200 ? Are the policies usually exclusive or do they come bundled up ?


-Professional Indemnity
AND
-Company Liability and Public Liability Insurance

I take it I can claim this as an expense / vat etc

Also is the minimum amount of cover required usually ?

[TheMonkey]

Note: If you have Jury service, get VERY friendly with your GP - they will write you a letter saying that you cannot cope with the stress and that you are not fit to stand. Works wonders!

[Ivor1]

Hudson have told me I need the following insurances for my ltd.

Public Liability: £1m
Professional Indemnity: £250k
Employers Liability £5m (if you have anyone else working through your Ltd company)

Im a ltd and my dad is the sectratory he has not contract of employment with me, would be be classed as an employee and therefore would I need 'Employers Liability' insurance ?

[TheMonkey]

Hudson have told me I need the following insurances for my ltd.

Public Liability: £1m
Professional Indemnity: £250k
Employers Liability £5m (if you have anyone else working through your Ltd company)

Im a ltd and my dad is the sectratory he has not contract of employment with me, would be be classed as an employee and therefore would I need 'Employers Liability' insurance ?

You only need employer's liability insurance if you have people under an employment contract basically. If your father is an employee then you will need it. You do not need it if only the director is on the payroll. This is how my Limited works.