IR35 Investigations. HMRC has its new 'avoiders'.

[northernladuk]

I wish you worked for HMRC!

2 contractors asked me what to do just today. I said IR35 insurance.

QDOS are going to have a field day.....

Funnily enough someone has just asked on another thread if insurance is backdated.

I'd like to know from QDOS if they'd represent, say, a GSK contractor if they took their insurance out now. I'd be surprised and slightly disappointed if they would.

[BrilloPad]

Funnily enough someone has just asked on another thread if insurance is backdated.

I'd like to know from QDOS if they'd represent, say, a GSK contractor if they took their insurance out now. I'd be surprised and slightly disappointed if they would.

I would have thought they would read the contract then decide.

As for backdating - only HMRC has a time machine.....

[TheInvoicer]

As I vaguely recall last time I renewed with QDOS I don't think they ask to see the contract to get the insurance - though probably small print that protects them i.e. if your contract is mince then they won't help you etc

I'm sure it covers historically as such though.

[jbryce]

I guess we'll soon see the ambulance chasers on this too - having moved on from Schemes they'll be offering 'bespoke' solutions to IR35 investigations and Ir35 compliance.

[mudskipper]

Funnily enough someone has just asked on another thread if insurance is backdated.

I'd like to know from QDOS if they'd represent, say, a GSK contractor if they took their insurance out now. I'd be surprised and slightly disappointed if they would.

Well at this stage it isn't an enquiry, or even a compliance check.

[jamesbrown]

Funnily enough someone has just asked on another thread if insurance is backdated.

I'd like to know from QDOS if they'd represent, say, a GSK contractor if they took their insurance out now. I'd be surprised and slightly disappointed if they would.

No way. It's a standard condition in insurance policies that if you knew or should've known about an insured event at the time of purchase, then that event isn't covered (otherwise, insurance wouldn't really work ). I haven't checked the TLC35 T&Cs for this, but it will be there. What constitutes an event will vary.

[webberg]

Let me ask a slightly different question.

My understanding of IR35 insurance is that it comes in various levels.

Level 1 is to insure the costs of an enquiry, but not the tax bill that may result.

Level 2 is to insure for costs and perhaps a capped tax amount.

Level 3 is costs and uncapped tax.

Presumably however none of this is triggered unless there is a trigger event, i.e. an IR35 status enquiry.

That may be defined in the policy.

Does the present letter saying "you may be a disguised employee, please pay up" constitute the start of an enquiry and therefore a qualifying event for insurance purposes?

[hammertime1985]

I have spoken to QDOS re the Tax Liability Cover (TLC35).

It has been confirmed that there will be a prospect of success review undertaken when you make a claim by the claims team.

I know that when you initially take out this insurance you do have to confirm a number of policy statements prior to them accepting you (and it's also worth getting your engagement contract reviewed at the same time as well). If you have a contract that they deem (outside) and you agree to the policy statements, they could still reject your claim which is slightly worrying!

[jamesbrown]

Sure, the above is the real question. FWIW, ignorance will be excluded as a workaround in the policy wording.

Edit: FAOD, referring to webberg's post.

[LoanCharged]

As I vaguely recall last time I renewed with QDOS I don't think they ask to see the contract to get the insurance - though probably small print that protects them i.e. if your contract is mince then they won't help you etc

I'm sure it covers historically as such though.

When you go through the online purchase process for QDOS TLC35, you have to tick a box to agree to six statements. One is that you have not had an IR35 enquiry in the last 3 years. Another statement is that you do not know of any possibly upcoming enquiries. I haven’t used the exact wording but you get the picture.

I would say that pretty much rules out GSK guys getting the insurance after the letter unless QDOS can advise otherwise on this thread.

P.s QDOS don’t require a contract review and pass for you to qualify and buy the TLC35. The insurance includes unlimited contract IR35 assessments so you could get that done later.