Time to ditch PCG/IPSE?

[Batcher]

Slight newbie question but how many contractors actually bother with all this extra insurance? I have PI&PL with Hiscox as required by my contract but aside from that, no other cover specific to being a contractor.

I consider myself a fairly sensible chap and have a decent warchest against being out of work, but am always wary of taking out insurance against every possible thing with the likelihood that you'll never need it.

I realize thought that the whole point of insurance is you don't need it until you need it, at which point you wish you had it, but how many people really bother with IR35 cover for example? Has anybody actually claimed on one of these policies that state they'll cover cost of investigation AND fees, and actually got the money?

Being a member of the PCG saved me £52k at the end of my IR35 investigation.

[SueEllen]

You are the only one of few who would admit it.

[Willapp]

Okay sounds like I need to get on the case then!

I certainly see the value in having cover if it can genuinely protect against expensive investigations and potential losses - think I've just become cynical about insurance in general as these days there seem to be policies for every tiny aspect of life, and I just think most of them must be preying on the fearful and taking money for nothing.

I hope you have business use added to your insurance if you have a car. Lots of permies don't need it but all contractors do.

Plus if you work from home make sure your home insurance covers it as some still don't.

Actually I don't currently. I'm probably wrong here but am sure last time I was contracting (only just back from a stint in permiedom) I read somewhere that it's not a requirement. However I do claim business mileage to get from home to client site, so I guess this isn't true and I need to change my policy?

Same with home insurance - as a rule I don't work from home and my registered company address is my accountant's business premises, but it's possible that I could work from home on occasion if I had need to. In that case does the policy still need changing?

[Batcher]

You are the only one of few who would admit it.

I found all the old documents today including the payslips they helpfully sent for me to pay in my "dues". The investigation took around 4 years so £9.5k of it was interest payments @ 7.5%.

I might load up a redacted version of the 'guilty' letter (which still makes me angry when I read it) and then the 'guilty but there's enough doubt so we'll let you off this time' letter after PCG got involved.

[PerfectStorm]

I might load up a redacted version of the 'guilty' letter (which still makes me angry when I read it) and then the 'guilty but there's enough doubt so we'll let you off this time' letter after PCG got involved.

Please do!

[SueEllen]

Actually I don't currently. I'm probably wrong here but am sure last time I was contracting (only just back from a stint in permiedom) I read somewhere that it's not a requirement. However I do claim business mileage to get from home to client site, so I guess this isn't true and I need to change my policy?

Same with home insurance - as a rule I don't work from home and my registered company address is my accountant's business premises, but it's possible that I could work from home on occasion if I had need to. In that case does the policy still need changing?

Business use in your car insurance is needed unless you are claiming your permanent work address is your client's office. If you are claiming your client's office is your permanent work address than you can't claim business milage.

The cost of adding to a new policy is £0. To do a change mid-way will cost the amendment fee plus maybe a few quid. IT professionals without loads of equipment aren't a massive additional risk.

It's worth doing it asap as if you have a non-fault accident you don't want to find yourself in the sh*t. Insurers do cancel policies when they find out and this will screw up your chances of getting any other insurance for ever.

While your registered office may be at your accountant's address, your trading address is where you live e.g. where you start your mileage claims. Lots of home insurers do cover office equipment for clerical work as standard. However some don't cover other computer work so read your present policy and see what is covered.

To cover office equipment outside the home e.g. your company phone, your company laptop, you will need either an add on to an existing policy or an additional policy. Someone posted in general that Direct Line do a cheap policy with public liability and employers liability insurance for £86. Some clients' require you to have public liability insurance as well as professional indemnity insurance.

[Batcher]

PDF of 'inside IR35' letter

The guy they interviewed at ClientCo had never met me, or spoke to anyone I knew there including the PM so had no idea of the actual working practices. I wasn't under control as I worked on my own most of the time on a different site and, in most cases, took decisions without consulting the PM as he was happy to leave the techie guys get on with it as long as the end product was delivered on time.

I wasn't allowed a substitute but that was explained in the document that ClientCo were particular about getting the right people in so wouldn't accept anyone coming in as a substitute. There are a few things in there where they contradicted themselves and those were the bits PCG picked up on when QDoS had given up on my case unless I paid £7k to take it to the commissioners.

There is a section that mentions they don't like their contractors working for anyone else but there was nothing in my contract to this effect. I showed I had another contract via an agency that I worked on at the same time and also had invoices going through the business for my plan B. They were only going after this contract because they had a pliable ClientCo to help them.

I could go on and on about it but I'll let those people interested read the letters and I'll answer any questions I can.

PDF of 'guilty but doubt' letter

[PerfectStorm]

A chilling read, thank you Batcher.

Was there any particular point that won the case for you or was it just the weight of reasons and several years? Feeling somewhat happier I plumped for membership!

[PerfectStorm]

Also QDOS's offer, though more expensive at £360, seems to actually cover you for the backpaid tax if you lose IR35 Insurance - IR35 - Contractor Insurance - Contractors - Qdos Consulting

The theory behind IPSE being "you won't have to pay it as we'll make sure you win"?

[malvolio]

Also QDOS's offer, though more expensive at £360, seems to actually cover you for the backpaid tax if you lose IR35 Insurance - IR35 - Contractor Insurance - Contractors - Qdos Consulting

The theory behind IPSE being "you won't have to pay it as we'll make sure you win"?

To be fair, QDOS haven't had to pay out yet and you can get the same assurance through IPSE using Abbey Tax's Survive35 policy. But in both cases, you are insuring yourself against a risk that the insurers are pretty much certain isn't going to arise. If you think that's good use of money then fine - after all, £300 isn't much against the value of the average contract - but I'm not convinced.