Hi,
I'm in a similar situation. I've been IT contracting via my limited company for about 6 years. About a month ago I started a new contract via umbrella company due to IR35.
My plan is to keep the company going with minimal outgoings for a few years. After that, I'll have an idea of how the market is with ltd co contractors, and if it's worth keeping or liquidating.
Most of the money left is for corporation tax due. After that there will just be a few £1000s in the bank account.
My insurance is due for renewal next week, but what do I actually need?
- Employers Liability? I'm now employed by an umbrella, so is it relevant?
- Public Liability? I'm not doing anything via the company that could injure someone or result in a claim am I?
- Professional Indemnity? This one I'm not sure about.
I see people here recommend keeping PI insurance for a few years, but what are the risks and worst case scenario?
I know it's only a few hundred quid, but there's no point paying for a service that's of little or no benefit.
As above, there won't be much money left in the business. Not brilliant, but not the end of the world if it's lost.
Can the claim go against me personally as a director and former employee?
I've not re-read all my past contracts recently, but don't remember a requirement to keep PI for following years. Even if there was, could it be enforced?
I do have a separate Qdos IR35 policy with 6 months until renewal. Is that something I should consider renewing in future too?
Thanks
I'm in a similar situation. I've been IT contracting via my limited company for about 6 years. About a month ago I started a new contract via umbrella company due to IR35.
My plan is to keep the company going with minimal outgoings for a few years. After that, I'll have an idea of how the market is with ltd co contractors, and if it's worth keeping or liquidating.
Most of the money left is for corporation tax due. After that there will just be a few £1000s in the bank account.
My insurance is due for renewal next week, but what do I actually need?
- Employers Liability? I'm now employed by an umbrella, so is it relevant?
- Public Liability? I'm not doing anything via the company that could injure someone or result in a claim am I?
- Professional Indemnity? This one I'm not sure about.
I see people here recommend keeping PI insurance for a few years, but what are the risks and worst case scenario?
I know it's only a few hundred quid, but there's no point paying for a service that's of little or no benefit.
As above, there won't be much money left in the business. Not brilliant, but not the end of the world if it's lost.
Can the claim go against me personally as a director and former employee?
I've not re-read all my past contracts recently, but don't remember a requirement to keep PI for following years. Even if there was, could it be enforced?
I do have a separate Qdos IR35 policy with 6 months until renewal. Is that something I should consider renewing in future too?
Thanks
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