IR35 Insurance - have Qdos ever paid out?

[contractor58]

If Qdos only agree to cover you with their IR35 Insurance once they have reviewed your contract and are happy it is a not caught by IR35, this would suggest they never or very rarely pay out ...which brings me to my question ....what's the point of taking out their insurance?

If you have PCG membership this will ensure you can get the best representation should you get investigated by the Revenue, and if Qdos deem you to be a clear pass for IR35 then the chances are you will almost certainly win any case against the Revenue anyway.

Does anyone know an example of them actually paying out? They obviously don't cover any contracts that they think may fail.

The only way I could see them losing a case is if you mislead them about the actual working relationship between yourself and your client ...which would probably invalidate the insurance anyway

(I may be missing the point here, but it seems like a complete waste of money) Any thoughts?

[Lewis]

If Qdos only agree to cover you with their IR35 Insurance once they have reviewed your contract and are happy it is a not caught by IR35, this would suggest they never or very rarely pay out ...which brings me to my question ....what's the point of taking out their insurance?

If you have PCG membership this will ensure you can get the best representation should you get investigated by the Revenue, and if Qdos deem you to be a clear pass for IR35 then the chances are you will almost certainly win any case against the Revenue anyway.

Does anyone know an example of them actually paying out? They obviously don't cover any contracts that they think may fail.

The only way I could see them losing a case is if you mislead them about the actual working relationship between yourself and your client ...which would probably invalidate the insurance anyway

(I may be missing the point here, but it seems like a complete waste of money) Any thoughts?

Contract does not need to be reviewed anymore .... http://forums.contractoruk.com/threa...tml#post253196

[malvolio]

Contract does not need to be reviewed anymore .... http://forums.contractoruk.com/threa...tml#post253196

From which you could probably infer that QDOS no longer beleive the chances of a succesful caught-by-IR35 case is much of a probability, and that a properly presented and represented defence will prevail, almost regardless of contractual niceties. Which is nice...

However, watch the next couple of budgets. Unlike everyone else, HMRC are not going away and still believe freelances to be tax avoiders first and a valuable, necessary commercial resource second

[Lewis]

p.s.

My thinking is this ... I am increasing persuaded by the arguments that it is not needed, and they do make sense to me.

However, the difference between in IR35 vs out IR35 is around 20% (good calculator here http://calculator.contractoruk.com/ir35-calc.php.)

Would you rather spend £200 to protected 20% of your income or keep the £200?

Consider that 20% multiplied by six years. That starts to become a scary figure!

It's a personal choice .... but I'd just end up worrying if I didn't have it.

[2uk]

p.s.

My thinking is this ... I am increasing persuaded by the arguments that it is not needed, and they do make sense to me.

However, the difference between in IR35 vs out IR35 is around 20% (good calculator here http://calculator.contractoruk.com/ir35-calc.php.)

Would you rather spend £200 to protected 20% of your income or keep the £200?

Consider that 20% multiplied by six years. That starts to become a scary figure!

It's a personal choice .... but I'd just end up worrying if I didn't have it.

We need some proof , cos I don't velieve QDOS will pay that easily. If the HMRC finds you guilty , so might QDOS ? There is a always a catch ya.

[malvolio]

We need some proof , cos I don't velieve QDOS will pay that easily. If the HMRC finds you guilty , so might QDOS ? There is a always a catch ya.

To be fair, I don't that QDOS have ever paid out, but then I don't know of anyone losing a contested IR35 case either; in fact, the latest victory I do know of was by someone who is as far away from the perfect model of an outside-IR35 person as you could wish to find.

However, if QDOS (or anyone else) accept the risk, then lose the case and then don't pay out, I'd say the chances of them getting sued were quite high...

[2uk]

To be fair, I don't that QDOS have ever paid out, but then I don't know of anyone losing a contested IR35 case either; in fact, the latest victory I do know of was by someone who is as far away from the perfect model of an outside-IR35 person as you could wish to find.

However, if QDOS (or anyone else) accept the risk, then lose the case and then don't pay out, I'd say the chances of them getting sued were quite high...

The QDOS lady said you are protected for all contracts without sending them to QDOS. How is that possible ? It is obvious that should an investigation commence , the QDOS will decide whether your contracts are TAX covered under their policy. And their decision you might not like.

Another point is that - they may have a clause in the policy to have the contracts reviewed by any reviewer OR - NO tax cover later on.

[TheFaQQer]

If Qdos only agree to cover you with their IR35 Insurance once they have reviewed your contract and are happy it is a not caught by IR35, this would suggest they never or very rarely pay out ...which brings me to my question ....what's the point of taking out their insurance?

If you have PCG membership this will ensure you can get the best representation should you get investigated by the Revenue, and if Qdos deem you to be a clear pass for IR35 then the chances are you will almost certainly win any case against the Revenue anyway.

Does anyone know an example of them actually paying out? They obviously don't cover any contracts that they think may fail.

The only way I could see them losing a case is if you mislead them about the actual working relationship between yourself and your client ...which would probably invalidate the insurance anyway

(I may be missing the point here, but it seems like a complete waste of money) Any thoughts?

IIRC, Qdos have fought a number of cases and never lost.

So I'd be astounded if they've ever paid out, as there is no need.

[Lewis]

IIRC, Qdos have fought a number of cases and never lost.

So I'd be astounded if they've ever paid out, as there is no need.

When I asked a while back they said they had lost one (out of many hundreds)

[Qdos Contractor]

Due to the fact that Qdos Consulting are one of the leading experts in the field of IR35 and status and have a track record of successfully defending contractors in IR35 enquiries that is second to none, there has never been the necessity for a TLC policy to pay out. Whilst this provides contractors with the confidence that they are receiving the best representation, each IR35 enquiry can present its own unique problems, e.g. attitude of a Status Inspector, unsupportive end client to name a few. This will have an impact on the prospects of success and cast doubts over the potential outcome. Having TLC in place, however, affords the contractor the peace of mind that, in the unlikely event that the enquiry is lost, the insurance policy will react to meet any arising tax liabilities.

From the start of any IR35 enquiry there can never be absolute certainty that the contractor will be victorious, even though they may have a solid contract and the working practices appear to indicate self employment. It is only through the progressive probing of HMRC that other facts may come out and other external influences may create an uncertain outcome.

The risk assessment for TLC35 is based on a simple working practices risk assessment, which can be completed online. We do not need sight of any written contracts and the IR35 status of these have no bearing on the policy.