QDOS insurance invalidated once stop working via LTD company?

[aligning2020]

To try and be clearer:

As the director, If you stop trading via your company and you move to a permanent role or a role via an umbrella, but you keep the policy active (while you either continue to keep the company open or are in the process of winding it up) then does the policy remain valid or invalid in respect of investigating a retrospective ir35 claim, should the situation occur?

As an FYI I am seeking opinion on this via other routes and will advise here if I get an answer. However, I also value opinions here, hence the ask.

[northernladuk]

To try and be clearer:

As the director, If you stop trading via your company and you move to permanent role or a role via an umbrella, but you keep the policy active (while you either continue to keep the company open or are in the process of winding it up) then does the policy remain valid or invalid in respect of investigating a retrospective ir35 claim, should the situation occur?

As an FYI I am seeking opinion on this via other routes and will advise here if I get an answer. However, I also value options here, hence the ask.

This isn't an opinion based question.. and if it is it is based on the facts of the policy. Speak to QDOS to find the facts and then we can discuss options,

[jamesbrown]

To try and be clearer:

As the director, If you stop trading via your company and you move to a permanent role or a role via an umbrella, but you keep the policy active (while you either continue to keep the company open or are in the process of winding it up) then does the policy remain valid or invalid in respect of investigating a retrospective ir35 claim, should the situation occur?

As an FYI I am seeking opinion on this via other routes and will advise here if I get an answer. However, I also value opinions here, hence the ask.

If you maintain the policy and the contracting parties remain in existence, then the policy remains valid, subject to the T&Cs. It isn't invalidated by your doing something on the side (e.g., employment, going on holiday to Tanzania, becoming vegetarian) unless there are specific T&Cs to that effect. Of course, there may be no reasonable prospect of success under investigation, depending on the facts, which means that the policy could be valid and still not pay out (but that isn't what you asked).

The answers lie in the actual policy wording, so read it!

https://www.qdoscontractor.com/docum...9-12-06-01.pdf

For example:

Policyholder, you, your
The company, firm, partnership, association, individual or any other entity specified in the Policy Schedule. At the
request of the Policyholder, the benefit of the policy may be extended to any director or partner in a personal
capacity, provided that the director or partner receives income of no more than £15,000 per annum from sources
outside the Policyholder including, but not limited to, taxable investment, employment, or rental income.

[aligning2020]

Thank you. So if the director begins to take income of more than £15,000 PA from a source other than the company (permanent, umbrella for example), then in the event of an investigation the policy will no longer cover him/her.

[malvolio]

Thank you. So if the director begins to take income of more than £15,000 PA from a source other than the company (permanent, umbrella for example), then in the event of an investigation the policy will no longer cover him/her.

That's what it says. Fascinating though - obviously they want the cover to be for the primary fee earning entity and not using a dormant/idle/non-trading/pretend company to hold insurance for other entities, people or activities, but I'm not sure their wording covers that option...

[aligning2020]

So pointless maintaining the insurance if you are going PAYE/Umbrella on more than £15k a year.

[LetterBox]

Phone QDOS, tell them your company will cease trading and will close at the end of March, then ask them if your TLC35 cover is still valid during the closing period and in the event that HMRC resurrect your company in say, 18 months time (assuming you continue to pay your premiums to QDOS from a personal account).

Phone QDOS, tell them your company will remain open for outside IR35 opportunities after March this year, in the meantime you will be taking an inside IR35 role that may last 12 months, the role is paying circa £100k, but business will probably have no money running through it, is cover still valid in this period assuming premiums to QDOS are paid?

Phone QDOS, tell them after March your companies status will be dormant, meanwhile take IR35 inside, 100k, premiums still paid blah blah.

The answer, is to phone QDOS...

[Paralytic]

That's what it says. Fascinating though - obviously they want the cover to be for the primary fee earning entity and not using a dormant/idle/non-trading/pretend company to hold insurance for other entities, people or activities, but I'm not sure their wording covers that option...

That's not how I read it:

Policyholder, you, your
The company, firm, partnership, association, individual or any other entity specified in the Policy Schedule. At the
request of the Policyholder, the benefit of the policy may be extended to any director or partner in a personal capacity, provided that the director or partner receives income of no more than £15,000 per annum from sources outside the Policyholder including, but not limited to, taxable investment, employment, or rental income.

(my bolding)

So, if the policyholder requests it, an additional person can be covered, but only so long as they earn no more than £15K from sources other than the policyholder (so sub-contractors are not excluded).

I can't see that wording (from reading that excerpt in isolation - aways a danger) extending that restriction to the main policyholder.

[aligning2020]

Does it actually depend on what the “policy holder” is set to on the policy? I.e. the main director or the company name itself.

[Paralytic]

Does it actually depend on what the “policy holder” is set to on the policy? I.e. the main director or the company name itself.

It already defines what the Policyholder is

The company, firm, partnership, association, individual or any other entity specified in the Policy Schedule.