Insuring against Investigations

[ChimpMaster]

I'm looking at buying a policy, possibly Qdos.

I'm not particularly expecting investigations but just don't want the hassle/cost to be a burden if it ever comes up.

Can anyone recommend Qdos or another firm?

Is it worth going for full cover (where they pay the tax due if caught) or just the usual level of cover for legal fees?

[Diestl]

Most contractors I speak to say IR35 is not an issue any more, but I would get PCG membership as it includes Insurance.

[Cowboy Bob]

I'm not sure that any policy you can buy can be back dated to cover contracts done before the policy was taken out. I might be wrong though.

[Sockpuppet]

Is it worth going for full cover (where they pay the tax due if caught) or just the usual level of cover for legal fees?

Well that depends. According to the PCG they are 500:1 win / loss ratio so I'd say you have very little chance of getting busted.

[malvolio]

Also note the PCG covers you for all contracts within the one subscription. Some of the others used to be on a contract by contract basis, so you need to keep them up for 6 years after you finish and I don't know if that still applies. Others insist on a clear IR35 pass before they take you on, which makes the insurance itself a bit redundant if you think about it.

By all means look around, but make sure you are comparing like with like: and I still think it's hard to beat the PCG deal

[ChimpMaster]

Thanks all, I'll look into PCG more in depth now.

[TheFaQQer]

If memory serves, Qdos will back date the coverage for previous contracts - as long as they review them and they pass their review, they will insure them.

HTH,
Faqqer

[malvolio]

If memory serves, Qdos will back date the coverage for previous contracts - as long as they review them and they pass their review, they will insure them.

HTH,
Faqqer

That's my point - why insure something that an expert has said is a pass? What are you insuring against, exactly? As long as you have cover for the legal/accountancy costs of an investigation, why pay to cover the risk of a tax bill that in their own opinion will almost certainly never be raised? That is why I suggest PCG membership is the better deal - no appraisals, merely cover for all contracts you take on.

[gravesendboy]

ir 35 not an issue

Most contractors I speak to say IR35 is not an issue any more, but I would get PCG membership as it includes Insurance.

Which contractors have you been speaking to ?

[Diestl]

Dave, John and Peter