Reply to: Daft Question - PCG

[ChimpMaster]

I have. In my opinion, if the taxman investigates you in 2011, and you aren't a PCG member in 2011, you don't get representation.
Just my view, it's not gospel.

In this scenario it would mean that you have to pay for PCG insurance forever 'just in case' you are investigated sometime in the future.

Say your contract career lasts 10 years. Then you go permie. So you would have to keep on paying for PCG insurance even while you're permie, in case you are investigated at that time?

And another: let's say you contract from Year 1 to Year 5, without PCG insurance. And then you get insurance for your contracting in Years 6 to 10.

What happens if HMRC contact you in year 6 to investigate your Year 1 Tax Return / IR35 status?

[Solidec]

I claim it as Insurance, as it covers jury service, IR35 and PAYE audits.

[TheFaQQer]

Last year's discussion on the topic is here.

I know Mal never posted here in any official capacity, but here's his summary

OK, I got bored enough to read the PCG's extensive history on this subject. To summarise...

It is an allowable business expense. There YourCo can pay it for you.

There is no assoicated BIK

However, you cannot offset it against CT because of the "not a registered body" rule.

Nuff said?

HTH.

[ratewhore]

SJD lets me claim it under accountancy fees

I doubt that. It goes under professional subscriptions, as already stated.

[Andy2]

Balls, sir.

It's not a legit expense under "membership of a professional body" but it's perfectly allowable under "legal fees" (and probably accounting fees too)

SJD lets me claim it under accountancy fees

[BrowneIssue]

Balls, sir.

It's not a legit expense under "membership of a professional body" but it's perfectly allowable under "legal fees" (and probably accounting fees too)

My Last Two Accountants Were Tossers And You Have My Permission To Say So™

Oh, how I wish these rules weren't so damned obscure. Every time I think I have my head around what we can or cannot do, I get made to feel as though I'm wrong again.

WTF do we have to have a taxation system that is so ferkin complicated for small businesses? Is it really in the best interests of the country?

I like simple laws; they are easy to follow. That's my the ten commandments are so enduring. But UK tax law is just a millstone around our necks. The amount of time and energy we put into trying to understand this stuff is stopping us from innovating and earning. It is FUKIN STUPID.

[Platypus]

Anyway, the PCG is not on that list. So it is not a legitimate expense, in their opinion. And they make up the rules.

Balls, sir.

It's not a legit expense under "membership of a professional body" but it's perfectly allowable under "legal fees" (and probably accounting fees too)

[MPwannadecentincome]

There is a list of all the different professional bodies whose membership you can claim as an expense on the HMRC web site. I found it interesting reading; just like the list of VAT registration codes for different types of business, it shows just how tulipe careers advisers are. These lists are great for telling you all the things you could do when you hit your mid-life crisis, or could aspire to when considering university.

Anyway, the PCG is not on that list. So it is not a legitimate expense, in their opinion. And they make up the rules.

I think that list is for employees in relation to income tax? I would have thought the remark that you cannot offset against corporation tax may apply in this case?

[BrowneIssue]

Pardon me if I'm wrong, but why are you not allowed to claim the subscription fee as an expense? AFAIR claiming it as an expense is fine, but you cannot offset it against corp tax.

There is a list of all the different professional bodies whose membership you can claim as an expense on the HMRC web site. I found it interesting reading; just like the list of VAT registration codes for different types of business, it shows just how tulipe careers advisers are. These lists are great for telling you all the things you could do when you hit your mid-life crisis, or could aspire to when considering university.

Anyway, the PCG is not on that list. So it is not a legitimate expense, in their opinion. And they make up the rules.

[TheFaQQer]

I bung it through the books too... if it ever gets queried I'll just cough up the tax. It's the only thing I knowingly claim that I shouldn't. There's a weak and dodgy principle underlying that, but too weak to defend.

WHS.

IIRC, Mal explained it ages ago.

[bored]

Pardon me if I'm wrong, but why are you not allowed to claim the subscription fee as an expense? AFAIR claiming it as an expense is fine, but you cannot offset it against corp tax.

[BrowneIssue]

Dont tell my accountant that please!

I bung it through the books too... if it ever gets queried I'll just cough up the tax. It's the only thing I knowingly claim that I shouldn't. There's a weak and dodgy principle underlying that, but too weak to defend.

[BrilloPad]

SInce it is not recognised by HMRC as a professional body ('cos it ain't one), if your company pays for you, you must reimburse your company as it is not a legitimate expense. Equally, if you pay you cannot claim it as expenses.

So if you are joining for you, you personally have to pay, not your Ltd Co.

Does that help?

Dont tell my accountant that please!

[opc]

You haven't answered any question with that statement.

I have. In my opinion, if the taxman investigates you in 2011, and you aren't a PCG member in 2011, you don't get representation.

Just my view, it's not gospel.

[opc]

SInce it is not recognised by HMRC as a professional body ('cos it ain't one), if your company pays for you, you must reimburse your company as it is not a legitimate expense. Equally, if you pay you cannot claim it as expenses.

So if you are joining for you, you personally have to pay, not your Ltd Co.

Does that help?

Spot on, thanks.