QDOS Tax Liability Cover (TLC35) vs Offerings from IPSE Plus

[nc1]

Hi all, i signed up to IPSE plus for benefits, i have come across the QDOS liability Cover, has anyone experience with these, not sure if i would need both.. just looking for peoples opinion.

Thanks in advance.

[northernladuk]

Try a search using the following method

QDOS IPSE site:forums.contractoruk.com

Try a few different search terms.
This one has been discussed many many times.

[malvolio]

IPSE offer the same cover through Abbeytax if you want to keep to a single source. IMVHO IPSE+ is more than enough cover anyway.

As an aside it's worth noting that as far as anyone knows on here this kind of cover has never been invoked and you are insuring against something the insurer is convinced will never happen. With the PS changes though, it may become more of a risk...

[Maslins]

Short answer - I would agree that having both is most likely overkill.

However does IPSE+ cover the taxes if you were hypothetically to suffer an IR35 investigation and lose? There's various tick boxes here, but unless I'm misunderstanding, it doesn't seem to suggest it would cover that potential tax bill.

I realise this is all quite unlikely, and (possibly this has changed in the last couple of years) but last time I spoke to Seb Maley at QDOS he said they'd never lost a case and had to pay out under TLC35, and he actually felt it would be good for QDOS if they did, as the cost of paying out would likely be exceeded by extra signups from people nervous the same might happen to them.

With the onus at least in the public sector moving to the client/agent, this will be a moving area though. The next 6 months could be interesting in how the public sector/agents react, and in turn how insurance companies react.

[atanas]

Let me hijack the thread. I'm looking at the insurance options as well and I wonder is it worthed to have TLC in your first year of your company formation? QDOS Tax Liability Cover (TLC35) with limit of £25k costs £199.00

[malvolio]

Short answer - I would agree that having both is most likely overkill.

However does IPSE+ cover the taxes if you were hypothetically to suffer an IR35 investigation and lose? There's various tick boxes here, but unless I'm misunderstanding, it doesn't seem to suggest it would cover that potential tax bill.

It doesn't. That is a separate cover from Abbeytax (Survive35) on top of IPSE+ (which, remember, is any tax investigation, not just IR35...)

I realise this is all quite unlikely, and (possibly this has changed in the last couple of years) but last time I spoke to Seb Maley at QDOS he said they'd never lost a case and had to pay out under TLC35, and he actually felt it would be good for QDOS if they did, as the cost of paying out would likely be exceeded by extra signups from people nervous the same might happen to them.

With the onus at least in the public sector moving to the client/agent, this will be a moving area though. The next 6 months could be interesting in how the public sector/agents react, and in turn how insurance companies react.

Exactly my point. You could find your insurer's confident and most probably entirely correct assessment has been overturned by your client's assessment of your status under the new rules. If that happens more than once, though , I suspect the premiums would go up sharpish and sharply

[northernladuk]

Let me hijack the thread. I'm looking at the insurance options as well and I wonder is it worthed to have TLC in your first year of your company formation? QDOS Tax Liability Cover (TLC35) with limit of £25k costs £199.00

Not you again... You don't need to Hijack it. Just read it and the links attached. Your constant demands for answers is getting a bit long in the tooth.

[atanas]

Not you again... You don't need to Hijack it. Just read it and the links attached. Your constant demands for answers is getting a bit long in the tooth.

FFS, get a life. Alright, I will never ask a single question ever again! Just rely on old post from years ago. Are you happy now???

[Fred Bloggs]

Let me hijack the thread. I'm looking at the insurance options as well and I wonder is it worthed to have TLC in your first year of your company formation? QDOS Tax Liability Cover (TLC35) with limit of £25k costs £199.00

No. A tax investigation is most likely to be triggered by a compliance visit or another tax related query from HMRC. In your first year there are no returns to query against.

[SueEllen]

FFS, get a life. Alright, I will never ask a single question ever again! Just rely on old post from years ago. Are you happy now???

It is not about you asking questions it is about you hijacking other's threads - in all forums I used and have used this is bad netiquette.

In answer to your specific question in theory you wouldn't need tax investigation insurance in your first year of trading. In practise HMRC could start a tax investigation if they see your VAT returns are dodgy after a couple of quarters or something else alerts them to something being not right. As a business owner it is up to you to assess the risk for your business yourself.