| Why has the PCG changed
insurer and claims handler?
The previous deal was via ULP with NIG
for both the TII and Route35 products. Following
a recent change of ownership of NIG, its entire
Special Risks portfolio has been put into
“run-off” and has been discontinued. This would
include both Route35 & TII. In essence, this
means that NIG will not accept any new policies
in the special risks areas, but will service any
existing policies. Any other comparable policies
provided by NIG for other organisations will be
in a similar position.
PCG therefore was forced to find an
alternative insurance provider and decided to
take a fresh and open approach, reviewing all
options available.
The choice of claims handler is driven by the
insurance company, hence the appointment of ATP
in place of Qdos. It has been misreported in
some quarters that PCG has terminated its
relationship with Qdos. We would like to assure
members that this is not the case and that PCG
continues to maintain a cordial and professional
relationship with Qdos. Our thanks go to Qdos
again for the excellent service that it has
provided members over the past few years, and
that it will no doubt continue to provide for
outstanding cases.
How was the selection of the new
insurer managed?
A competitive bid
process was initiated and PCG directors have
been in negotiations with a variety of providers
since September. They were advised by specialist
broker Roger Borley of Blackmore Borley.
The key criteria we looked for were quality
of service, rating of the insurer, track record
of the claims handler in providing IR35 and S660
advice, price, and the potential to build a
long-term relationship. We also insisted that
the service was fully underwritten so that
members could be certain of cover in all
circumstances. Which PCG products and
policies does this affect?
The
change of insurer affects:
- The TII cover (now called PEI) which is
provided as part of the PCG membership fee and
includes IR35, PAYE, VAT, S660, Full Enquiry and
Corporation Tax Aspect claims
- Route35, which is an additional scheme that
guarantees expert advice and support throughout
the whole process of an IR35 investigation and
uniquely includes expert professional support
during the PAYE compliance visit itself.
Is the new policy identical to the
previous one?
In many areas yes, but
we have managed to secure some important
additional benefits:
- The amount of cover on any one claim has
increased from £50,000 to £75,000.
- Members who have submitted their contract to
the Inland Revenue for an opinion will still be
able to purchase Route35, regardless of the
outcome of the Revenue opinion.
- If the Inland Revenue fails a contract
submitted to them, if there is a reasonable
argument that the contract should have passed,
then the member will now be able to challenge
this under PEI (TII).
- The new PEI now covers members who have had
a submitted contract "failed" - providing that
the tax is correctly paid as within IR35 on that
contract, or that there have been significant
circumstantial changes that mean that the
original Revenue opinion is no longer
applicable.
Notwithstanding the above enhancement of
insurance cover, it remains PCG's strong advice
that members should not use the Revenue's
contract review service.
What is the new structure for
insurance provision?
Effective 1
January 2004:
- Abbey Tax is the agent and claims handler
for PCG's tax insurance cover (PEI and
Route35).
- Abbey Tax is providing the PCG Tax helpline
support (0845 125 92 52 - free for all general
taxation enquiries, note, as before, this
service is not for detailed individual tax
planning).
- Lawspeed will provide specialist case
support to Abbey Tax for IR35 and S660 cases.
Can we have confidence in Abbey
Tax?
Abbey Tax is one of the largest
claims handlers in all elements of Revenue
authority disputes, having processed over 6,000
cases since Self Assessment was introduced and
with more than 1,000 ongoing cases at any one
time. These investigations and disputes
include:
- Income Tax Self Assessment Full
Enquiries
- Corporation Tax Self Assessment Full
Enquiries
- Employer Compliance Disputes
- HM Customs and Excise VAT disputes
- IR35 Disputes
The Abbey Group has joint ventures with
ICAEW, ACCA, ICAS and The Law Society. ATP is
also a provider of insurance to many major
corporations and businesses ranging from top 50
accountancy firms such as Grant Thornton, Moore
Stephens, Saffery Champness and PKF, through to
High Street Practitioners in every part of the
UK. In connection with its sister company, Abbey
Legal Protection, ATP is providing the taxation
element of Full Legal Expenses packages to
various trade federations, of which the
Federation of Small Businesses (FSB) is probably
the best known.
ATP's senior claims personnel are all
ex-Revenue, as are all the investigations
specialists and tax consultants that provide
advice for the helpline. Many also have
experience of working in practice ensuring that
there is a commercial edge to advice that they
provide.
Is Lawspeed equally qualified to
provide the best service to PCG
members?
PCG has a long-term
relationship with Lawspeed, which has an
outstanding 48-nil record of IR35 results to
date. The higher volume of 200 cases
successfully defended by Qdos (who were the
NIG/ULP claims handlers) is a reflection of the
numbers that were assigned via PCG | 
