Reply to: Insurance through PCG

[ASB]

PCG Directors themselves have advised that it is a legitmate business expense; "If you haven't got a business, you don't need the PCG" is the basic argument. Hector has not yet complained and where that question has been asked in an audit, he has accepted that answer.

In which case I think they have changed their position (they are quite entitled to do this of course). In the early days the advice was - if I recall correctly - to the contrary. Could I suggest a search of their fora [tounge very much in cheek mode]

I would agree it is unlikely to be challenged - but I do think it could be - at least in terms of the basic membership tier. Here it seems to me the product is quite simply membership of a professional body which is not on the IR's approved list for claimable subscriptions (I did always claim it).

In terms of the pcg plus type offering then this is a different product.

[malvolio]

Strictly the answer is no (but may have changed). Subscriptions to professional bodies are only claimable if they are on the IR approved list. When I was a member the PCG were not.

Whether you want to claim it as general professional advice is between you and your accountant. I imagine most do.

PCG Directors themselves have advised that it is a legitmate business expense; "If you haven't got a business, you don't need the PCG" is the basic argument. Hector has not yet complained and where that question has been asked in an audit, he has accepted that answer.

[ASB]

Just joined PCG BTW ...can I claim this as an expense?

Strictly the answer is no (but may have changed). Subscriptions to professional bodies are only claimable if they are on the IR approved list. When I was a member the PCG were not.

Whether you want to claim it as general professional advice is between you and your accountant. I imagine most do.

[malvolio]

Oh yes - sorry to incovenience you I have noticed your aversion to people asking questions without using search first. .

It's just I hate having to repeat myself

I said, it's just that....

[Contractor UK]

Discounted insurance through Contractor Alliance

Don't forget the new deal when you join Contractor Alliance

Business Liability £5 million EL and £1 million PL £ 90.00 per annum
Legal expenses £60 p.a. - this includes IR35, S660A & PAYE audit + Jury Service £100 a day cover.
20% off Professional Indemnity (individual cover, not pooled)

[rawly]

This is all on the website, by the way, together with an email address and phone number for enquiries...

Oh yes - sorry to incovenience you I have noticed your aversion to people asking questions without using search first. I did look at their website in more depth and found the info. I thought it was amusing in one of their FAQ the question was "If I write to HMRC and ask them to comment on my contract in advance will they pass it and so I'll be in the clear". The answer was "Well, they would not comment and what a good way of inviting them into your parlour!" A good question though, I thought.

[malvolio]

Can someone say how their IR35 insurance works? I notice you have to pay extra to have a contract 'reviewed' by their advisors, and then if necessary they may recommend you have a full review. Does this mean for their insurance to be valid you have to get all your contracts reviewed by them? If you're already with them can you explain this. Also, what is the cost, as it is just under the heading 'optional services'.

PCG don't review contracts. If you get a letter from Hector saying they are opening an investigation for either PAYE audit or IR35 investigations, contact the office and, depending on your membership level, you get professioanl representation. That is not conditional on the state of your contract.

However, you should always have a clear idea of the status of your contract(s) and it is just not sensible to accept an IR35-caught contract these days: and if you can't assess that yourself, you should get them reviewed and amended. If the contract puts you solidly inside IR35, then you are inside IR35, but it won't stop the coverage.

This is all on the website, by the way, together with an email address and phone number for enquiries...

[malvolio]

I totaly agree I can't see why I would ever need it but my contract states I must have PI & PL grrrr!

Just joined PCG BTW ...can I claim this as an expense?

Yes. If you weren't in business you wouldn't need it, so it is fully deductible and not a BIK.

[Pondlife]

Just joined PCG BTW ...can I claim this as an expense?

I do (as do most others I think)

[rawly]

Can someone say how their IR35 insurance works? I notice you have to pay extra to have a contract 'reviewed' by their advisors, and then if necessary they may recommend you have a full review. Does this mean for their insurance to be valid you have to get all your contracts reviewed by them? If you're already with them can you explain this. Also, what is the cost, as it is just under the heading 'optional services'.

[gingerjedi]

PI? It's only compulsory if your contract says you must have it. Most of the time it is of little value, and AFAIK no one-man-band contractor has ever been sued for it. So if you don't need it contractually, don't buy it.

PLI? Might have a value if you cause an accident on someone else's premises, but again, of little real-world value

ELI? No use at all for most, but if you take on staff or put in a substitute who is employed by you you need it.

I totaly agree I can't see why I would ever need it but my contract states I must have PI & PL grrrr!

Just joined PCG BTW ...can I claim this as an expense?

[malvolio]

Can someone confirm whether PLI is compulsory for a Ltd Co. I always thought it was but have seen posts stating otherwise.

PI? It's only compulsory if your contract says you must have it. Most of the time it is of little value, and AFAIK no one-man-band contractor has ever been sued for it. So if you don't need it contractually, don't buy it.

PLI? Might have a value if you cause an accident on someone else's premises, but again, of little real-world value

ELI? No use at all for most, but if you take on staff or put in a substitute who is employed by you you need it.

[gingerjedi]

Yes, thanks for being patient with me!

I know its a bargain for what you get as well as supporting a professional group that represents all of our interests its just that starting a ltd is costing me a fortune i.e. insurances, opening business accounts, memberships, accountants fees etc etc.. and I haven’t even put my first invoice in yet!

[Pondlife]

Professional Indemnity (PI), Public Liability Insurance (PLI) and Employers Liability Insurance (ELI) are not PCG products, but are avaialble at a significant discount to members if you need them (and most don't, TBH)

Does that help explain it?

Can someone confirm whether PLI is compulsory for a Ltd Co. I always thought it was but have seen posts stating otherwise.

[malvolio]

You are confusing PEI and PI - and I am too, I think, re-reading your post properly!

PEI is the IR35 cover, standard (i.e. free) with the basic membership. PCGPlus adds PAYE Investigation cover, which is, as I said, well worth it, and adds some other useful goodies. So join the PCG using PCGPlus and you are covered for anything even vaguely IR35-related for all your contracts without question for £210 (the only exception being if you are actively under investigation when you join, obviously...).

Professional Indemnity (PI), Public Liability Insurance (PLI) and Employers Liability Insurance (ELI) are not PCG products, but are avaialble at a significant discount to members if you need them (and most don't, TBH)

Does that help explain it?