• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Tax liability cover - do i need it?

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Tax liability cover - do i need it?

    Hi,

    First time contractor, been going for a few months and operating as a limited company doing the low salary/high dividends. The work im doing is systems engineering.

    Question is do I need tax liability cover, ie some protection against potential IR35 queries? (the company ive been looking at is Qdos).

    I can find much online about if they are required (apart from the companies that sell them obviously).

    Thanks in advance

    #2
    Join IPSE, use IPSE Plus cover and stop worrying about it. And download their Guide to Freelancing as well as reading the various guides on this site. Then you can make an informed decision.

    My view - which is not universal - is that you would be insuring against a risk that the insurers are fairly certain won't happen or they wouldn't be insuring you. At the end of the day it's a simple risk vs cost decision.
    Blog? What blog...?

    Comment


      #3
      Don't join IPSe they area bunch of London centric trade union like idiots who have not managed to do anything for contractors so far. QDOS is you best option

      Comment


        #4
        Originally posted by Btucks View Post
        ... ie some protection against potential IR35 queries?
        There's protection against queries (tax investigation cover, or professional expenses insurance (PEI)) and protection against liabilities if found to be inside.

        IMO it's worth insuring against the former - if you do get an IR35 query you want to be represented by experts.

        Comment


          #5
          I also just have IPSE+

          It isn't insurance but it does mean that if I get investigated I don't need to talk to HMRC. IPSE provide the legal eagles to do it.
          The chances are that HMRC will move on if you're clearly well-represented as they're unlikely to find much evidence against you.

          But do make sure you understand what IR35 is and get your contract checked by a professional (Qdos do this for free if you have PI/PL insurance with them).
          See You Next Tuesday

          Comment


            #6
            Originally posted by Eirikur View Post
            Don't join IPSe they area bunch of London centric trade union like idiots who have not managed to do anything for contractors so far. QDOS is you best option
            Bollocks - but thanks for your clarification...

            Actually, just to address your criticisms:

            1. 80% of contractors work in the Greater London area. That may explain why most of their members are London based. The membership covers the whole of the UK and beyond.

            2. They are not a trade union, nor anything like it, they are a trade representative body, and the only one speaking up for contractors/self-employed/freelance/whatever you care to call them.

            3. The list of things they have done is actually quite long, from winning Arctic to stopping several major things happening that would have hit all contractors. However, people tend not to notice things that haven't happened.

            4. IPSE+ at £270-ish gives you cover worth around £1000 on the open market plus a shed load of other discounts, as well as guides and advice on anything related to contracting.

            5. QDOS sell insurance. IPSE doesn't.
            Last edited by malvolio; 17 August 2017, 07:37.
            Blog? What blog...?

            Comment


              #7
              I use QDOS and they are superb. Never had any issues with them.

              Comment


                #8
                For just under £250 + VAT for IPSE+ it's a no brainer. JFDI and get a good night's sleep knowing that if HMRC come sniffing, then what could have turned into 2 years of pain and £10k - £15k (IIRC) in legal representation is covered by professionals with an excellent track record.

                There's a link around here somewhere that will get you 15% off your first year.

                Comment


                  #9
                  I use Qdos too, you get a free IR35 check too on your contract (1 a year from memory?) and I've always found them to be professional and quick.

                  I've never had to "claim" though so can't comment on that side.

                  Welcome to the forums! Am surprised you didn't get any snotty answers within about 750ms off some of the cliquey brigade on here; if you do just ignore them.
                  Originally posted by Nigel Farage MEP - 2016-06-24 04:00:00
                  "I hope this victory brings down this failed project and leads us to a Europe of sovereign nation states, trading together, being friends together, cooperating together, and let's get rid of the flag, the anthem, Brussels, and all that has gone wrong."

                  Comment


                    #10
                    Originally posted by rl4engc View Post
                    I use Qdos too, you get a free IR35 check too on your contract (1 a year from memory?) and I've always found them to be professional and quick.

                    I've never had to "claim" though so can't comment on that side.

                    Welcome to the forums! Am surprised you didn't get any snotty answers within about 750ms off some of the cliquey brigade on here; if you do just ignore them.
                    I was on pubic transport so couldn't post about gladiators.
                    "You’re just a bad memory who doesn’t know when to go away" JR

                    Comment

                    Working...
                    X