I might be better off as an Umbrella

[Cowboy Bob]

I've never really understood IR35 insurance, surely if you think you need it then you are effectively saying that you expect you couyld be IR35. I would use this as a big pointer to a person being not wholly in business in its own right.

Secondly if a major insurer believes your contract is good enough to be worth them covering you then it is going to be watertight, and hence you don't need the cover.

Just a thought

IR35 insurance covers the cost of the investigation. It does not cover the tax owed if they find you owe tax. Given that you have to pay for the cost of an investigation whether you are found inside or outside of IR35, the insurance is pretty much a must have IMO.

[Pondlife]

IR35 insurance covers the cost of the investigation. It does not cover the tax owed if they find you owe tax. Given that you have to pay for the cost of an investigation whether you are found inside or outside of IR35, the insurance is pretty much a must have IMO.

Agreed. If you've had the common(?) sense to think about whether you're outside IR35 and have had your contract pass a review then you're likely to win an investigation. The insurance is the way to survive the investigation.

[ASB]

IR35 insurance covers the cost of the investigation. It does not cover the tax owed if they find you owe tax. Given that you have to pay for the cost of an investigation whether you are found inside or outside of IR35, the insurance is pretty much a must have IMO.

There are some which will cover the costs and tax. They tend to have more stringent entry criteria and require sight of contracts/asessment.

Hers is one http://www.lawspeed.com/providers/pr...ativeview=true

I am sure there are more.

[Cowboy Bob]

There are some which will cover the costs and tax. They tend to have more stringent entry criteria and require sight of contracts/asessment.

Hers is one http://www.lawspeed.com/providers/pr...ativeview=true

I am sure there are more.

Maybe, but boredsenseless implied in his/her post that if they were outside IR35 and would definitely win an investigation that they wouldn't need insurance at all.

Unless you're going to defend yourself (which would be rather idiotic) you need to pay for your tax experts/solicitors for the duration of the investigation and the only cost effective way is via insurance. It's not like a court case where if you win you're likely to get awarded costs...

[ASB]

Maybe, but boredsenseless implied in his/her post that if they were outside IR35 and would definitely win an investigation that they wouldn't need insurance at all.

Unless you're going to defend yourself (which would be rather idiotic) you need to pay for your tax experts/solicitors for the duration of the investigation and the only cost effective way is via insurance. It's not like a court case where if you win you're likely to get awarded costs...

I was simply pointing out that there are some products available which will cover the tax and interest. You suggested this was not the case.

I am aware of the costs of investigations having spent 3 years arguing with the IR and with no insurance. Ocassionally the commissioners (if it gets that far) do award costs against the IR but it is pretty rare.

[Moff]

I guess if the Inland Revenue want to make your life difficult, whoever you are they can.

I have even been sent a tax bill when I way PAYE years back, so even that is not safe...

Moff