IR35 review

[northernladuk]

IR35 enquiries: the seven questions that deserve an answer from HMRC now

I would rather then didn't answer them and so open a can of worms that clearly makes HMRC look bad so they decide to act on.

Leave it in a corner quietly rather than pushing them to fix it

[TheFaQQer]

If the claim is not defendable then we would say so and in our experience of two such cases the underwriter withdrew support.

If the insurance company is going to withdraw their support as soon as things get tricky, then where does that leave the contractor??

I pay insurance cover to protect me from an HMRC investigation - I believe that each contract I do is outside IR35 for a number of reasons, but that doesn't mean that someone else will take the same position as I do. So, I think it's defendable, you say it isn't, the insurance company withdraws it's support, I lose the case.

I don't see the risk that the insurance company takes if this is their approach.

[northernladuk]

If the insurance company is going to withdraw their support as soon as things get tricky, then where does that leave the contractor??

I pay insurance cover to protect me from an HMRC investigation - I believe that each contract I do is outside IR35 for a number of reasons, but that doesn't mean that someone else will take the same position as I do. So, I think it's defendable, you say it isn't, the insurance company withdraws it's support, I lose the case.

I don't see the risk that the insurance company takes if this is their approach.

Gotta be pragmatic here though. I am sure these types of cases will be in examples where people have done zero diligence and are claiming outside in a clearly inside situation thinking they won't get caught or something. If that is the case they they deserve to be left on their own. Every single insurance requires some level of compliance or diligence. I am not watching my premiums rise due to people buying it and sitting pretty thinking they are safe so don't have to lift a finger. Kate did point out that they took on weak cases and won so will be have to be pretty rare and clear cut failures for be stranded by the sound of it.

[jamesbrown]

If the insurance company is going to withdraw their support as soon as things get tricky, then where does that leave the contractor??

I pay insurance cover to protect me from an HMRC investigation - I believe that each contract I do is outside IR35 for a number of reasons, but that doesn't mean that someone else will take the same position as I do. So, I think it's defendable, you say it isn't, the insurance company withdraws it's support, I lose the case.

I don't see the risk that the insurance company takes if this is their approach.

That's precisely why IR35 insurance has always struck me as being a complete waste of money, as opposed to, say, PCG+ membership. With IR35 insurance you're effectively insuring against that sliver of risk whereby a case is deemed worth pursuing, but is subsequently lost. Since most insurers require some due diligence prior to offering their product (e.g. a contract/wp review) and the probability of failure is low, I imagine this insurance product is rather successful...for the insurers.