PCG
Professional Expenses Insurance Scheme
The PCG Professional Expenses (Tax
Investigations) Insurance is a group policy, which provides insurance
coverage
for the benefit of PCG members. The
policy is held by PCG, which is the only policyholder and only PCG has
direct rights under the contract of insurance. These rights are held
for the benefit of PCG members. Strict compliance with the terms and
conditions is required if you are to receive a benefit.
Please note that this is intended
as a summary only and NOT the full Policy Terms and Conditions.�
The PEI policy has a Period of Insurance that
expires on 31 December each year. The policy pays up to �75,000 worth of
Professional Fees (except where stated below) in respect of any one claim and
in aggregate for any one member in the Period of Insurance.
All claims must be notified by
PCG to Abbey Tax Protection on behalf of Insurers, Brit Insurance Limited. If you have an enquiry or correspondence from
HMRC which you believe might constitute a claimable event on the PCG�s policy,
then please contact PCG office by one of the following methods:
���
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��� 0845 125 9899
��� 020 8622 3200
The Appointed Representative for
IR35 & S660A Matters will be Accountax or Lawspeed with an Abbey Tax
Consultant dealing with all other enquiries. In order for PCG to claim under its
Policy, you must be a fully paid up Member of PCG at the time that one of the
following events occurs:
i) Income
Tax Self Assessment (ITSA) Full Enquiries
The trigger point is the issue of
the S9A or S12AC TMA 1970 Notice by the Inspector of Taxes together with a request
to examine all of the business books and records or, in the case of a personal
taxpayer, all of the underlying documents used in the preparation of the Self
Assessment Return.
ii)
Corporation Tax Self Assessment (CTSA) Full Enquiries
The trigger point is the issue of
the Notice under S24(1) Schedule 18 Finance Act 1998 together with a request to
examine all of the business books and records.
iii)
Corporation Tax Self Assessment (CTSA) Aspect Enquiries
The trigger point is the issue of
the Notice under S24(1) Schedule 18 Finance Act 1998. The Inspector will be
making enquiries into specific Aspects of the Corporation Tax Return. CTSA
Aspects carry an excess of �150 and a Maximum Limit of Indemnity of �400 i.e.
up to �250 will be paid. An Aspect that becomes a Full Enquiry will then
benefit from the �75,000 Policy Limit.
iv)
Employer Compliance Disputes
The cover is in respect of PAYE,
P11D and NIC disputes and the trigger point is the issue of a letter,
assessment or notice by HMRC, following an Audit visit, providing there is a
prospect of disputing the alleged liabilities.
v) HM Revenue & Customs VAT Disputes
The trigger point is the issue of a
written decision, assessment, or statement of alleged arrears by HM
Revenue & Customs into Value Added Tax and/or Value Added Tax
default surcharges and
misdeclaration penalties, providing there is a prospect of disputing
the
alleged VAT liabilities.
vi) IR35
Disputes
Cover is also available where HMRC
are disputing the IR35 declaration following either the issue of a Notice under
S24(1) Schedule 18 Finance Act 1998 or an HMRC Compliance visit. However, there
must be a written Contract for Services in respect of the liabilities which are
being disputed the real arrangements do not significantly conflict with the
contractual arrangements on status-relevant matters. The Contract must also
have been strictly followed and there must be a reasonable prospect of
successfully contesting the Revenue's allegations.
vii)
S660A Enquiries
The trigger point will be either the
issue of a Notice under S24(1) Schedule 18 Finance Act 1998 Aspect
Enquiry
specifically dealing with matters pertaining to settlements legislation
or an HM Revenue & Customs Compliance visit which concerns itself
with the settlements
legislation, however any S660 Enquiry will be covered regardless of the
source.
The main exclusions are as follows:
- Existing investigations and disputes at the
time the insurance is taken out.
- An Enquiry or Dispute occurring or notified to
insurers after the Individual has ceased to be a Member of� PCG.
- Fees incurred prior to the written acceptance
of a claim.
- Claims arising where the annual
Returns/accounts are submitted "late"; i.e. outside the time
parameters set out in Taxes Management Act 1970.
- Attendance at routine VAT and Employer
Compliance visits.
- Special Civil Investigations, HMRC Customs
& Excise Investigations Division cases and criminal investigations.
-
- ITSA Aspect Enquiries where the Inland Revenue is merely raising a routine enquiry
into a part of the Self-Assessment Return
If you are a PCGPlus member, see also PAYE Audit Cover
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