IR35 Insurance

[MickeyP]

Is there such a thing as an IR35 insurance that covers full refund of tax owed (along with investigation expenses, accountant fees etc) should you be subject to investigation and found to be inside IR35 when you thought you were outside?

Sorry if it's a dumb newbie question

[Lockhouse]

Qdos Tlc35

[Sockpuppet]

Yes. Do a search and all shall be revealed.

Although only works if you are not already on the contract and you must get the contract cheked out with them prior to starting each one.

[dmini]

I had a contract checked AFTER it started - and covered by insurance- when I became aware it could be outside (couple of months after the start

[MickeyP]

I had a contract checked AFTER it started - and covered by insurance- when I became aware it could be outside (couple of months after the start

Thanks for the replies.

Was that with qdos also Dmini?

[lawspeed]

We have arrangements with the PCG's insurer (Abbey Tax Protection) to provide Survive35 Tax-Safe insurance. This underwrites the actual IR35 tax, NIC's, interest and penalties on engagements that Lawspeed has reviewed and approved. This can be done at any time, not merely before commencement. In fact, for absolute peace of mind, some clients request reviews of all their arrangements going back to when they first started contracting (if after April 2000) to obtain full insurance cover.

[KennyG]

Apologies for the cynicism but my concern with this type of Insurance is whether or not the Insurance Company would pay out - surely in practice any Insurance Company will try to find ways of avoiding payout on any Insurance Claim - and I can't see how this could be any different?

[MickeyP]

You're right they would do this.

That's why you need to ensure that you've really outside Ir35 prior to taking out the insurance on each and every contract. That takes a lot more effort that merely signing an iR35 friendly contract and getting it checked over by Qdos or B&C etc.

Now I'm confused. If they've looked at the contract prior to agreeing to insure then they're surely committed to honour that should an investigation take place?

[dmini]

Was that with qdos also Dmini?

yes
with regards to other comments,yes, there is a risk they won't pay - but I had a questionnaire to fill in about my working practices, ltd co payment practices etc, I ensured I was honest about what I answered, and was covered.

[MickeyP]

More questions will be asked later. It's no different to taking out travel insurance for lost baggage. They need to only know where you are going and for how long to give you cover - however make a claim and they will want to know:

where you lost the item
how you lost the item
who you reported it to
a copy of the police report
the value of the item
original proof of ownership with a supporting receipt or some other proof
the replacement value

need I say more....

Maybe a comment from Lawspeed would be nice at this point........