LawSpeed ?

[opticalraceltd]

Anybody use lawspeed for IR35 contract review (~£360), and tax safe insurance (~£400) ? I quote:

'This insurance provides complete IR35 peace of mind, as it covers ALL ADDITIONAL TAX, NICs, INTEREST AND PENALTIES.'

I think they charge by the hour for IR35 investigation work. They are used by the PCG, so I guess thats a pretty good recommendation in itself ?

Or does anyone else use any other law/tax consultants ?

[ASB]

A problem with that sort of insurance (as a generality) is that in order to offer cover they need a substantial input into the contract you agree. [i.e. it's hardly likely anybody will offer cover based upon 'any old contract'.]

The catch-22 can then be trying to agree terms that are acceptable to the agency and the insurer. It is important to understand just what you are buying. Of course if you can cross these hurdles it is good to have the peace of mind.

Everybody gets a PAYE audit sooner or later, and the associated costs can be quite significant.

[eAZy]

IR35 Insurance

IR35 Insurance
IR35 investigation insurance is available from most specialist IR35 advisors.

Investigation Insurance
Route35 from the PCG is good value for money. However, you need to be a member to take advantage of this, www.pcg.org.uk
Tax Liability Cover / Contractor Care etc
This pays for the IR35 tax & interest & penalties if you are caught by IR35 after appeal(s) have failed.

All contracts will be reviewed before you are offered this by Accountax, Lawspeed, Qdos etc. Can be quite expensive.

IR35 Advisors
Accountax : www.accountax-ltd.com/
Bauer & Cottrell : www.bauerandcottrell.co.uk/
Egos Ltd : www.egos.co.uk/
Lawspeed : www.lawspeed.com/

[planetit]

Re: IR35 Insurance

Just to clarify. Route35 from the PCG doesn't exist any more. It has been replaced by a membership class called PCGPlus which does pretty much the same thing.

[rootsnall]

Re: IR35 Insurance

I'm guessing they won't cover you for historical contracts you have already completed !? ie. the contract won't have been reviewed and amended at the time

[eAZy]

Past Contracts

Are you talking asking about PCG Investigation insuranace or Tax insurance ?

PCG insurance (PCG Plus)
It does not matter, as you need to have cover at the commencement of investigation. This covers all previous contracts, with no reviews required.

Tax Liability Cover Insurance
You may be right. You probably have to have all the contracts reviewed & negotiate a premium if they pass.

My personal view is that, why take TLC cover when it is only available if contracts clearly pass. If they clearly pass you do not need this cover, but only investigation insurance.

[malvolio]

Past Contracts

My personal view is that, why take TLC cover when it is only available if contracts clearly pass. If they clearly pass you do not need this cover, but only investigation insurance.

That is my view as well, although it is possible to fail an IR35 investigation despite the contractual conditions, so there is a marginal case for such cover.

BTW, Route35 is alive and well - it's been bundled into PCGplus, it seems, to stop the PCG having to become an insurance broker and so have to meet all the FSA rules.

[helen7]

Re: Past Contracts

I am sure they would refuse your insurance claim if you are actually deemed within IR35 so, it kind of seems pointless.

I have many collegues who are not paying IR35 who claim that they are covered because they are memebers of the PCG....I doubt the PCG would defend you in court if you ARE actually within IR35.

Basically, if you are a contractor, you pay IR35. If you think you are outside it, you are probably kidding yourself!

[Underscore]

Re: Past Contracts

eh?

Why dont you just head down to 11 Downing St - drop your knickers and bend over.

NEVER EVER agree that you are inside IR35. If you are Ltd and a contractor your are outside, unless someone tells you different.

[helen7]

Re: Past Contracts

Unfortunatly it is that attitude which has meant most contracts are working on the pretence that they are outside IR35 instead of activly protesting against it.

Face it, the law exists until WE get it changed.

Ignoring it will not change anything.

There are still people in court today for unpaid Poll Tax bills!!

Everyone will pay eventually, unless they are willing to sit in court and fight it.