Insurance against HMRC rule changing

[nik]

I've had a company propose what they describe as an "innovative" scheme to maximise contracting earnings, involving Isle of Man trusts, loans, and so forth.

I'm treating this with a healthy degree of scepticism.

However, it does, at the moment, appear to be legit. I'm also aware that HMRC are free to introduce new legislation and back date it to 12/12/04. Which would mean I might need to find the extra tax that HMRC demand at relatively short notice.

Do any insurance companies offer insurance policies against this sort of event? I figure this would be useful for two reasons.

1. If the premium is reasonable then I can sleep soundly at night knowing that should HMRC come demanding (years x 23K) I've got it covered, and

2. If the premium they want to charge is excessively high then this is a good indication (insurance companies being in the business of asessing risk) that the risk associated with this particular scheme is high, and that I should run, not walk, to the nearest exit.

So, can anyone recommend any specialist insurance companies that offer this sort of cover?

[BrollyBabe]

Slightly illegal surely

[BrilloPad]

What is the name of the company?

[nik]

Slightly illegal surely

I don't believe so -- it appears to be a currently legitimate way to avoid (note: not evade) tax. And it's registered with HMRC.

I am fully aware that "registered" does not mean "approved". And I know that HMRC may decide, at some point in the future, to close this particular loophole.

That's fine, and all part of the game. What I'd like to do is get some insurance against that eventuality.

[ratewhore]

I think if there was insurance for this we would all be doing it. I assume they are claiming high 80% returns?

[nik]

I think if there was insurance for this we would all be doing it. I assume they are claiming high 80% returns?

mid-70s. One of the points they emphasised was that they don't take the piss by paying minimum-wage salary.

Of course, that makes no difference if HMRC closes this particular loophole because of any other companies in the space that are taking the piss.