IR35 Insurance

[MickeyP]

Is there any company that offers something like TLC35 by QDOS (i.e. covers investigation fees + possible unpaid tax due to IR35) that doesn't insist on PAYE salary being £9.5k or above?

p.s I don't want to get into the is it or is it not necessary debate. Only if its available.

[Darren@UptonAccountants]

IR35 Guarantee

Yes, both Accountax and ourselves provide an IR35 Guarantee Scheme covering all tax/NIC, costs, etc.

If you need further details please drop me an email.

[sidknows]

what dies this insurance cover -- unpaid tax , interest plus penalties and cost of investigation ?

[Darren@UptonAccountants]

Ir35

Providing we approve the contract through the normal read over process, covers all tax, NICs, penalties, interest and all professional fees.

Full details of T&C, etc are available on request, etc, etc!

[Hiram King Of Tyre]

Why the PAYE restriction anyway?

[damo111176]

Providing we approve the contract through the normal read over process, covers all tax, NICs, penalties, interest and all professional fees.

Full details of T&C, etc are available on request, etc, etc!

I don't quite understand this though, surely the key is not the contract but your working practices, my contact is ultra generic and ticks the boxes for IR35 but I know full well my working practices show something quite different, the employer has direction and control, I have little or no right of substitution, they say when I can be on holiday the same as they say for 3-4 limited companies I work with etc etc etc

[Qdos Contractor]

I don't quite understand this though, surely the key is not the contract but your working practices, my contact is ultra generic and ticks the boxes for IR35 but I know full well my working practices show something quite different, the employer has direction and control, I have little or no right of substitution, they say when I can be on holiday the same as they say for 3-4 limited companies I work with etc etc etc

I imagine most insurers will look at the working practices as well as the contract. We base our risk assessment solely on the WP now - as you say, a good written contract is of little help if it is not reflected in the true facts.

We require a salary level of £9.5k+ because, in our experience, low salary and high dividend payments increase the risk of enquiry.

[Hiram King Of Tyre]

I imagine most insurers will look at the working practices as well as the contract. We base our risk assessment solely on the WP now - as you say, a good written contract is of little help if it is not reflected in the true facts.

We require a salary level of £9.5k+ because, in our experience, low salary and high dividend payments increase the risk of enquiry.

Is that true? I spoke to an accountant who said there was no conclusive evidence of that at all.

Also, if all is above board, why worry about an enquiry?

I'm not disagreeing, just enquiring

[Darren@UptonAccountants]

Ir35

No real evidence to support this but is allegedly one of the things they look at when choosing likely victims.

However, even if it does reduce the likelihood of enquiry, it's not an IR35 indicator and has no bearing on status.

With most insurance underwritten products, they look at potential risks and ways of mitigating those risks and by increasing the salary this may acheived. However other products are not insurance company underwritten but are guarantees.

[THEPUMA]

Is that true? I spoke to an accountant who said there was no conclusive evidence of that at all.

Also, if all is above board, why worry about an enquiry?

I'm not disagreeing, just enquiring

It is effectively a way of increasing the excess payment. If you pay a salary of £10K, you will have paid the first £2K tax that would otherwise have been claimable under the policy.