Professional Contractors Group (PCG) Professional Expenses Insurance Scheme

Please note that this is intended as a summary only and NOT intended to be the full Policy Terms and Conditions. The full policy wording will be available shortly

The PCG Professional Expenses (Tax Investigations) Insurance is a group policy taken out by the PCG on behalf of its Members with a Period of Insurance that expires on the 31st 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 to Abbey Tax Protection Limited on behalf of Insurers, Brit Insurance Limited, by contacting PCG office by one of the following methods: <<<<<<< taxinvest_summary_of_cover.html E-mail [email protected] Tel: 0845 1259899 Fax: 0208 622 3200

Abbey Tax can also be contacted by post: 1 Mitchell Court, Castle Mound Way, Rugby, CV23 0UY.

Abbey Tax can also be contacted by post: Myson House, Railway Terrace, Rugby, CV21 3HT

The Appointed Representative for IR35 & S660 Matters will be Lawspeed with an Abbey Tax Consultant dealing with all other enquiries. In order to claim under the Policy, you must be a fully-paid up Member of the 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 the Inland Revenue, following an Audit visit, providing there is a prospect of disputing the alleged liabilities.

v) HM Customs & Excise VAT Disputes

The trigger point is the issue of a written decision, assessment, or statement of alleged arrears by HM Customs & Excise 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 the Inland Revenue are disputing the IR35 declaration following either the issue of a Notice under S24(1) Schedule 18 Finance Act 1998 or an Inland Revenue 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 Inland Revenue 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 the 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 Compliance Office, Special Investigations Section and HM Customs & Excise Investigations Division cases.
  
• ITSA Aspect Enquiries where the Inland Revenue is merely raising a routine enquiry into a part of the Self Assessment Return