Accountax

[nullfork]

Hi,

What do people think of the Accountax "IR35 Guarantee"?

Sounds to me that as long as they OK your contract then you're pretty much sleeping easier at night.. I know the costs aren't exactly cheap but thinking on the grand scheme of things..

In my opinion this would be better than say QDOS's "TLC35" as they don't review your contract, so in theory if it came to crunch I suppose they could dispute the clauses in it..

Just my 2p's worth...

[Sockpuppet]

I just don't do work that is inside IR35 or remotely close to being inside it.

The last contract failed IR35 check so it was changed and the working practices are far outside IR35. I'm usually in a different country to the client.

[TheFaQQer]

I just don't do work that is inside IR35 or remotely close to being inside it.

The last contract failed IR35 check so it was changed and the working practices are far outside IR35. I'm usually in a different country to the client.

That's just because you're a trucker posing as a contractor

I looked at Qdos coverage, but decided not to bother. I have PCG Plus which will fund the defence, as I'm pretty sure that I'm outside IR35 and would win any investigation.

[Lockhouse]

As a PCG Plus member I've extended the cover through AbbeyTax who offer the same sort of scheme by paying them an extra premium directly. IIRC £350 covers £150-£200K's worth of turnover with cheaper rates for lesser amounts - but you have to be a PCG Plus member or have AbbeyTax PEI to be accepted.

I'm outside IR35 as well but I've got too much to risk by not being insured (on a decent rate, house, wife, kids etc etc). It's a personal decision that suits the way I work.

[Qdos Contractor]

In my opinion this would be better than say QDOS's "TLC35" as they don't review your contract, so in theory if it came to crunch I suppose they could dispute the clauses in it..

That wouldn't happen. We assess applications on the basis of your actual working practices, which are equally as important. We would never be able to reject a claim on the basis of a dodgy written contract if we never asked to see it.

Clearly it's highly advisable to have your contract assessed and improved anyway and the TLC35 provides that benefit free of charge.

[nullfork]

That wouldn't happen. We assess applications on the basis of your actual working practices, which are equally as important. We would never be able to reject a claim on the basis of a dodgy written contract if we never asked to see it.

Clearly it's highly advisable to have your contract assessed and improved anyway and the TLC35 provides that benefit free of charge.

Thanks for the feedback. So I take it if you purchase TLC35 then you're also entitled to a contract review, with changes suggested as needed? Thing is, as you say, that's just contractual changes, not working practice changes.

My point was that Accountax seem to be sticking their neck out on the line by solely relying on a "sound contract" (either their own, or having your current one "OK'd"). Thus even if you working practices put you inside IR35 and it came to court, and Accountax lost then they'd still pay up your back tax / penalties. On the other hand I take it that if it came to court with QDOS and the working practices were found to be inside IR35, I'm no too sure if QDOS would then cough up..

Apologies if I'm barking up the wrong trees!!

[Qdos Contractor]

Thanks for the feedback. So I take it if you purchase TLC35 then you're also entitled to a contract review, with changes suggested as needed? Thing is, as you say, that's just contractual changes, not working practice changes.

My point was that Accountax seem to be sticking their neck out on the line by solely relying on a "sound contract" (either their own, or having your current one "OK'd"). Thus even if you working practices put you inside IR35 and it came to court, and Accountax lost then they'd still pay up your back tax / penalties. On the other hand I take it that if it came to court with QDOS and the working practices were found to be inside IR35, I'm no too sure if QDOS would then cough up..

Apologies if I'm barking up the wrong trees!!

If, in our opinion, your working practices are compliant then we would defend your case and pay out if it was lost. The only problem would be if you drastically misrepresented the situation on the original application, which is highly unlikely.

Because our initial application is a working practice questionnaire, you are effectively getting a WP assessment free of charge anyway. If there are any problems we'll advise you on how to improve them.

I don't know how Accountax's risk assessment procedure works, but they may well rely solely on the contract and that's fine. IR35 revolves around both the contract and the actual WP and we simply chose to use the latter for insurance purposes.

[nullfork]

Thanks guys - all valid points.

However, in conclusion it seems to me that if you genuinely are outside IR35, and the QDOS/etc. WP assessment judges you outside (which by default it would), then by all means go ahead and take that insurance if you wish, it will give some people peace of mind.

Now, the way I see it, if you blatantly are inside IR35 (in both WP and contract) then as long as Accountax/etc. could change your contract clauses, and have them agreed via negotiation, then in effect they will give you the "IR35 Guarantee". To me it seems quite bizarre that you can hand over £1,000 - get your contract modified - then be guaranteed of no IR35 comeback (even though you know damn well you are inside)..

Thoughts?

[Lockhouse]

Thanks guys - all valid points.

However, in conclusion it seems to me that if you genuinely are outside IR35, and the QDOS/etc. WP assessment judges you outside (which by default it would), then by all means go ahead and take that insurance if you wish, it will give some people peace of mind.

Now, the way I see it, if you blatantly are inside IR35 (in both WP and contract) then as long as Accountax/etc. could change your contract clauses, and have them agreed via negotiation, then in effect they will give you the "IR35 Guarantee". To me it seems quite bizarre that you can hand over £1,000 - get your contract modified - then be guaranteed of no IR35 comeback (even though you know damn well you are inside)..

Thoughts?

Insurance is just playing the percentage game. If there was no money in it, people wouldn't offer it.

[KennyG]

It's all very well in theory, paying for an Insurance policy which will cover you for tax & NIC should you lose an IR35 investigation against HMRC, but the first thing any Insurance Company does in the event of a claim - be it motor, household, travel or any type of insurance - is try to find a way of avoiding a payout.

So - how can we be guaranteed that Qdos or Accountax would indeed stump up if push came to shove?