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New Contract - What Does a Prudent Contractor Do?

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    New Contract - What Does a Prudent Contractor Do?

    OK, first contract money was a bit tight, so I freely accepted and bent over. No IR35 review, no insurance etc.

    Recently been offered a new contract, and figured I should try and do things properly this time around. My accountant has recommended the firm Larsen Howie to conduct an IR35 review (at a cost of £40).

    1). Is it worth getting a solicitor to perform an IR35 review? (Presumably yes!), and if so, would someone like Larsen Howie be suitable or should I be looking to QDOS?

    2). Is the IR35 insurance policy worth having? What levels of cover do you purchase, and why? I have a fairly risk tolerant approach and lean towards self-insurance, but with legislation changes, and potential for this contract to run beyond April 2020, I'm leaning towards having some form of cover in place, although quite what I'm not so sure.

    3). I'm being asked to take out Public Liability Insurance by the client. I have not had to have this before - is it worth pushing back on? As a Business Analyst and someone who works in insurance, I'm struggling to see the value of having this cover in place?

    #2
    Originally posted by fiisch View Post
    OK, first contract money was a bit tight, so I freely accepted and bent over. No IR35 review, no insurance etc.

    Recently been offered a new contract, and figured I should try and do things properly this time around. My accountant has recommended the firm Larsen Howie to conduct an IR35 review (at a cost of £40).

    1). Is it worth getting a solicitor to perform an IR35 review? (Presumably yes!), and if so, would someone like Larsen Howie be suitable or should I be looking to QDOS?

    2). Is the IR35 insurance policy worth having? What levels of cover do you purchase, and why? I have a fairly risk tolerant approach and lean towards self-insurance, but with legislation changes, and potential for this contract to run beyond April 2020, I'm leaning towards having some form of cover in place, although quite what I'm not so sure.

    3). I'm being asked to take out Public Liability Insurance by the client. I have not had to have this before - is it worth pushing back on? As a Business Analyst and someone who works in insurance, I'm struggling to see the value of having this cover in place?
    1. Yes get a contract review. QDOS.

    2. Yes IMHO. Not that expensive and consider the life changing risks if you get investigated. QDOS are good but consider IPSE too.

    3. If its in the contract you've got no choice. Why moan about it? Have a look at QDOS - sure its something like £20 a month is all.
    Rhyddid i lofnod psychocandy!!!!

    Comment


      #3
      Don't forget to read the newbie guides on the right and learn to use the search method in the link below. These are very basic questions which have been covered many many times.

      https://www.contractoruk.com/forums/...uk-forums.html
      Last edited by northernladuk; 14 May 2019, 08:43.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by fiisch View Post
        OK, first contract money was a bit tight, so I freely accepted and bent over. No IR35 review, no insurance etc.

        Recently been offered a new contract, and figured I should try and do things properly this time around. My accountant has recommended the firm Larsen Howie to conduct an IR35 review (at a cost of £40).

        1). Is it worth getting a solicitor to perform an IR35 review? (Presumably yes!), and if so, would someone like Larsen Howie be suitable or should I be looking to QDOS?

        2). Is the IR35 insurance policy worth having? What levels of cover do you purchase, and why? I have a fairly risk tolerant approach and lean towards self-insurance, but with legislation changes, and potential for this contract to run beyond April 2020, I'm leaning towards having some form of cover in place, although quite what I'm not so sure.

        3). I'm being asked to take out Public Liability Insurance by the client. I have not had to have this before - is it worth pushing back on? As a Business Analyst and someone who works in insurance, I'm struggling to see the value of having this cover in place?
        QDOS are "cheap but good enough" for most situations, if you have PI/PL with them they will give you free contract reviews, if a solicitor is charging you £40 for something it's only going to take 6 mins of their time (£400 an hour is fair rate for a good solicitor) think of that as you will
        Originally posted by Stevie Wonder Boy
        I can't see any way to do it can you please advise?

        I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

        Comment


          #5
          Thanks chaps.

          Contract submitted for next day IR35 review, public liability (it was far cheaper than I was expecting) and legal/jury service protection bought. I've also bought the tax liability cover up to a £50k limit, which for now should be sufficient (contracting for only eight months thus far, on average City BA rates).

          Comment


            #6
            Originally posted by SimonMac View Post
            QDOS are "cheap but good enough" for most situations, if you have PI/PL with them they will give you free contract reviews, if a solicitor is charging you £40 for something it's only going to take 6 mins of their time (£400 an hour is fair rate for a good solicitor) think of that as you will
            Hi Simon,

            Just to clarify the above, we're not a solicitors firm. We're an Insurance Broker and IR35 specialists for contractors. However, I do agree with your point above that if a solicitor was charging a client £40.00 for something it would indeed ring alarm bells, certainly if they're checking documents such as contracts. Contractors should always stick to using IR35 specialists which should typically change between £35.00 and £50.00 for a basic assessment.



            Ryan - LH
            Last edited by Larsen Howie; 14 May 2019, 13:54.

            Comment


              #7
              Originally posted by psychocandy View Post

              2. Yes IMHO. Not that expensive and consider the life changing risks if you get investigated. QDOS are good but consider IPSE too.
              IR35 insurance means you have to pay before your engagement starts and then pay forever for a lifetime of your LTD and maybe even for the rest of your life.

              That is very nuance that getting a risk with a small rubbish contract you have to pay for IR35 insurance indefinitely.

              Comment


                #8
                Originally posted by FK1 View Post
                IR35 insurance means you have to pay before your engagement starts and then pay forever for a lifetime of your LTD and maybe even for the rest of your life.

                That is very nuance that getting a risk with a small rubbish contract you have to pay for IR35 insurance indefinitely.
                You don't have to pay for insurance indefinitely. One, maybe 2 full years max after you close the LTD and you are golden.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  Originally posted by fiisch View Post

                  2). Is the IR35 insurance policy worth having? What levels of cover do you purchase, and why? I have a fairly risk tolerant approach and lean towards self-insurance, but with legislation changes, and potential for this contract to run beyond April 2020, I'm leaning towards having some form of cover in place, although quite what I'm not so sure.
                  If the proposed changes come in force for April 2020, then IR35 insurance may not be much use.
                  The proposed change makes the client responsible for the determination. On that basis there may well be a market for clients to buy an equivalent insurance, but not for the contractor.

                  It is all speculation at the moment though.
                  See You Next Tuesday

                  Comment


                    #10
                    Originally posted by northernladuk View Post
                    You don't have to pay for insurance indefinitely. One, maybe 2 full years max after you close the LTD and you are golden.
                    6 years after finishing last contract no?

                    that's the time that an investigation can go on for, or do you mean if the LTD is closed they're not likely to chase beyond a couple of years?

                    Comment

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