Qdos tlc35

[Alan @ BroomeAffinity]

To the best of my knowledge, I'm outside IR35. If there was an investigation, I'm pretty confident that I'd win.

But, for that nagging doubt that says I might still lose and get hit with penalties, it's worth it for the peace of mind. Plus, if they are just on the hook for the investigation costs, there's nothing to prevent them from saying "oh yes, you'll lose so pay up" and walking away. Not that I think Qdos would necessarily do that, but if they have to pay the penalties you know they are going to fight that bit harder to keep you from losing

That seems fair enough. Thanks.

[RasputinDude]

Sorry, I wasn't clear in what I meant to say. But, is it not the case that those 6 questions which you need to answer will put you firmly OUTSIDE IR35? And you will only get cover if that's the case? In which case why bother with the insurance for the tax and penalties? Surely the Total Defence cover would be enough?

Because while *I* am confident that I am outside of IR35, I don't have an unlimited budget and HMRC does - and HMRC may have a wildly different idea as to my IR35 status than me, so I want to be sure that I have adequate protection.

[Alan @ BroomeAffinity]

Because while *I* am confident that I am outside of IR35, I don't have an unlimited budget and HMRC does - and HMRC may have a wildly different idea as to my IR35 status than me, so I want to be sure that I have adequate protection.

Yep. I see that now. And for the £300 uplift from the enquiry only cover I guess that makes sense.

[Qdos Contractor]

Sorry, I wasn't clear in what I meant to say. But, is it not the case that those 6 questions which you need to answer will put you firmly OUTSIDE IR35? And you will only get cover if that's the case? In which case why bother with the insurance for the tax and penalties? Surely the Total Defence cover would be enough?

No, the questions are just a very basic check that the contractor is operating in the right ballpark and they themselves have a reasonable knowledge of what is required to be IR35 compliant.

For example, the question: to the best of your knowledge would you be able to exercise your right of substitution? A contractor may have a decent substitution clause in their contract and - as far as they know - that is reflected in reality, but who knows what the end client will come out with when probed by HMRC. That's the real risk with IR35.

It also enables us to refer and check any difficult situations, i.e. the Friday to Monday scenario (surprising how many people still do this).

[Maslins]

It also enables us to refer and check any difficult situations, i.e. the Friday to Monday scenario (surprising how many people still do this).

Yup, twice this week to date I've had potential clients thinking about setting up a Ltd Co as their employer suggested it would suit everyone concerned.

Whether the employer cynically knows it'll only suit themselves (no e'ers NIC/redundancy/holiday pay etc) and be of negligible benefit to the "employee"/"contractor" (as IR35 would eat most of the possible tax benefits) or is unaware of the risk to the "contractor" I don't know.

[Alan @ BroomeAffinity]

No, the questions are just a very basic check that the contractor is operating in the right ballpark and they themselves have a reasonable knowledge of what is required to be IR35 compliant.

For example, the question: to the best of your knowledge would you be able to exercise your right of substitution? A contractor may have a decent substitution clause in their contract and - as far as they know - that is reflected in reality, but who knows what the end client will come out with when probed by HMRC. That's the real risk with IR35.

It also enables us to refer and check any difficult situations, i.e. the Friday to Monday scenario (surprising how many people still do this).

Makes sense now. Can you PM your email address. I've a proposal for you.

[xantamisch]

i'm with others here

- I think I'm okay
- but God knows whether HMRC would agree
- if i did get investigated, I'd be able to pick up the phone and get someone who knows what they are talking about to represent me (and ideally scare HMRC off pretty quickly)
- so for me it's as much about stress avoidance as actual insurance against penalties etc

in theory anyway - haven't tested it yet......

[jmo21]

Makes sense now. Can you PM your email address. I've a proposal for you.

Oooftt, there it is people, business getting done!!!