QDOS cranking up the pressure with IR35 insurance

[psychocandy]

Indeed but as I have very little evidence from people I trust on the outcomes if needed the extra £300 a year (not forgetting tax relief) is a cheap option in my book. Like you said, each to their own level of risk.

Yeh. True enough. When the potential if you do somehow get tagged for IR35 is potentially life-ruining its worth it possibly.

Got to admit I'm with PCG at moment but considering adding the extra as well. I know that likely it wont ever be needed but I dont really want to go through 2 years+ of sleepless nights wondering 'what if'. If you're covered then in theory you dont need to give a toss whether you win or lose because the insurance will pay out....

[Lockhouse]

If you are a PCG member and contact Abbey Tax directly, for an additional fee they will increase their IR35 insurance to cover any IR35 tax liability should you be investigated and found inside. There are some conditions though; you must be paying minimum wage, not be overdrawn on your director's account and also have a contract that's been passed by a reputable supplier. It depends how much you want to pay for peace of mind but as someone who has had a 4 year investigation and won, it works for me.

[psychocandy]

If you are a PCG member and contact Abbey Tax directly, for an additional fee they will increase their IR35 insurance to cover any IR35 tax liability should you be investigated and found inside. There are some conditions though; you must be paying minimum wage, not be overdrawn on your director's account and also have a contract that's been passed by a reputable supplier. It depends how much you want to pay for peace of mind but as someone who has had a 4 year investigation and won, it works for me.

Exactly. 4 years of grief Im guessing...

Any idea how much Abbey Tax charge on top?

Why minimum wage? Whats that got to do with it? Trying to work it out but I'm guessing £8K a year is no good then....

Still cant see the relevance of this since I think I'm right in saying a Directors salary is not subject to minimum wage legislation?

[jamesbrown]

Exactly. 4 years of grief Im guessing...

Any idea how much Abbey Tax charge on top?

Why minimum wage? Whats that got to do with it? Trying to work it out but I'm guessing £8K a year is no good then....

Still cant see the relevance of this since I think I'm right in saying a Directors salary is not subject to minimum wage legislation?

Yes, unless the Director also has a contract of employment. From what I understand, it's theorized that HMRC could make a fuss about 7488 not being a "commercial" salary, but it's pretty specious to suggest that the difference between a commercial salary and not is 4k. Afterall, it's in the strong interests of the company not to overpay tax, within reason. I've also heard that a salary below NMW could be a flag for investigation, but that's speculation. Some accountants recommend the NI threshold, some recommend NMW.

[Hex]

Any idea how much Abbey Tax charge on top?

It ranges from £299 upwards depending on contract value. Likely to be between £300 and £400 per year. It is different to QDOS though in that once you've paid for a year it covers all contracts for that year on an on-going basis. You do not need to pay if you stop working - it still covers all your old contracts. You only need to pay the next year if you have more work you need covering.

It's called Survive35. You can ask for more info by emailing: survive35@abbeytax.co.uk

[Higgs Boson]

Is it not just worth a few hundred pounds just for piece of mind? The cost is about £1.20 per working day.

Would you pay £1.20 out of your loose change everyday to be covered for the investigation and the tax?

[psychocandy]

It ranges from £299 upwards depending on contract value. Likely to be between £300 and £400 per year. It is different to QDOS though in that once you've paid for a year it covers all contracts for that year on an on-going basis. You do not need to pay if you stop working - it still covers all your old contracts. You only need to pay the next year if you have more work you need covering.

It's called Survive35. You can ask for more info by emailing: survive35@abbeytax.co.uk

I might do to be honest. How is QDOS different though?

Also, if I joined either one now would they cover me for any investigations (obviously assuming nother was in progress at the moment) from now onwards even if related to contracts performed in last 18 months say? Or is it only any additional payments accrued from start date?

[psychocandy]

Yes, unless the Director also has a contract of employment. From what I understand, it's theorized that HMRC could make a fuss about 7488 not being a "commercial" salary, but it's pretty specious to suggest that the difference between a commercial salary and not is 4k. Afterall, it's in the strong interests of the company not to overpay tax, within reason. I've also heard that a salary below NMW could be a flag for investigation, but that's speculation. Some accountants recommend the NI threshold, some recommend NMW.

Hmm, interesting that they should say this. My accountant, NW, advise the 7488 as OK.

Im assuming though that since Abbey Tax are the ones the PCG use for their normal IR35 legal coverage that they dont impose this on normal PCG coverage? Be scary for all of us who thought they were covered only to find PCG/Abbey Tax told us no way because our salaries weren't enough.....

Also, like you say, assuming minimum wage is 12K (is it?) then I cant see how that's vastly different to 7.5K to be honest. Neither of which are really are commercial salary.

One thing - how much extra NI per year would be due if you decided to up your salary in this way? Am I right in saying that both employer and employee NI would come into play here, so around 19-20%. £4500 = £900 extra NI?

QDOS dont have this limitation do they? Surely better to leave salary alone and go with QDOS rather than Abbey Tax?

[Qdos Contractor]

I might do to be honest. How is QDOS different though?

Sorry, coming into this thread really late.

Our TLC policy is an annual fee which covers the current and all backdated tax years. So you will be covered as long as you have the policy in place, regardless of the contract/tax year HMRC are looking into. You don't insure individual tax years or contracts. If you stop contracting and close your company down, you'd just need to keep the policy in place for a limited period (i.e. not 6 years).

We have a minimum PAYE salary level of £5k.

Let me know if you have any other questions.

[psychocandy]

Sorry, coming into this thread really late.

Our TLC policy is an annual fee which covers the current and all backdated tax years. So you will be covered as long as you have the policy in place, regardless of the contract/tax year HMRC are looking into. You don't insure individual tax years or contracts. If you stop contracting and close your company down, you'd just need to keep the policy in place for a limited period (i.e. not 6 years).

We have a minimum PAYE salary level of £5k.

Let me know if you have any other questions.

Cheers Mr QDOS