Why has the PCG changed insurer and claims handler?

PCG therefore was forced to find an alternative insurance provider and claims handler 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.

• 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�s TII and Route35 policies. We have every confidence that Lawspeed will maintain its superb record as the volumes of cases it handles increases, and we will be reporting these cases as usual.

How is Accountax involved?
PCG continues to work very closely with Accountax in its case law strategy and we will be working with them in the coming months on a number of IR35 cases as well as the first S660 case.

Who is responsible for handling claims registered/notified prior to 1 Jan 04?

• Any claims registered/notified prior to 1 January 2004 will continue to be handled by Qdos.
  
• If you are already in dialogue with Qdos, this will continue
  
• Any claim notified after 1 January 2004 under the new PEI will be dealt with by Abbey Tax.
• However, under Route35, the purchase date of the Route35 policy will determine who will handle/support the claim. Further advice should be sought from the PCG office.

We are working with Abbey Tax and Qdos to ensure that all members are fully covered to at least the level under the previous agreement.

If you are about to make a claim, then please contact the office and we will put you in contact with the relevant claims handler.

Further Information
Cover FAQ
http://www.pcg.org.uk/insurance/taxinvest_faqs.html

Summary of Cover
http://www.pcg.org.uk/insurance/taxinvest_summary_of_cover.html

Some final points to remember:
If you receive a notification of investigation from the Inland Revenue, you should contact the Tax Helpline on 0845 125 92 52, without delay, for advice. You should advise your accountant that you have legal expenses insurance and the details of the policy.

If you need to make a claim, you should contact the PCG office on [email protected] or 0845 125 98 99 who can advise on the claim form completion process from the website.