QDOS IR35 insurance

[malvolio]

This is exactly my question also. In already a PCG+ member and have had the basic QDOS contract review. Im now wondering whether I need to take out the QDOS IR35 insurance which seems to explicity cover any owed back tax (compared to the PCG policy as I understand it).

Thanks.

An old question...

If you wish, it's your money and both PCG and QDOS won't shoot you for using the other, although both may argue about who gets to fight the initial case on your behalf. You can also get the same cover through your PCG membership: search Tax Safe on the main website.

It certainly covers accrued interest and penalties (if they are applied which they probably won't be if you've taken some care to establish your status): does it also cover the tax owed or just the additional tax owed???

The question is though, if someone is happy to insure you for a risk equivalent to a seriously large multiple of the premium, what are the chances that you will actually ever need it? Bearing in mind the success rate of both in defending IR35 cases and that QDOS have yet to pay out under the policy.

There's more to life than IR35. It's not actually your biggest business risk if you understand it properly.


ps. PCG doesn't sell insurance. It pays for representation for its members...

[Gaz_M]

Wonder if anybody can help me whilst I'm waiting for QDOS to come back with an answer...

I was completing the TLC35 online application & noticed that QDOS offered an additional section 660a cover at the same time.

One question whilst completing the form is: "The same rate of dividend is paid to all shares" - you have to be able to answer 'Yes' to all questions.

Now my shares are split 80/20 so I obviously pay our dividends at 80/20. Can I therefore answer 'Yes' to the above question? QDOS have sent the enquiry to their 'tax expert' and should get back to me within the next 48 hours.

[TheFaQQer]

One question whilst completing the form is: "The same rate of dividend is paid to all shares" - you have to be able to answer 'Yes' to all questions.

Now my shares are split 80/20 so I obviously pay our dividends at 80/20. Can I therefore answer 'Yes' to the above question? QDOS have sent the enquiry to their 'tax expert' and should get back to me within the next 48 hours.

It's to stop you having a Class A share for you and a Class B share for your wife, which then pays a different dividend amount.

As long as the shares are the same class, then you can answer "yes" to the question.

[Gaz_M]

It's to stop you having a Class A share for you and a Class B share for your wife, which then pays a different dividend amount.

As long as the shares are the same class, then you can answer "yes" to the question.

This is the full list of questions, isn't the 'class' covered elsewhere?

1. All owned shares are ordinary shares only

2. There are no shares owned by anyone other than spouses or civil partners

3. The same rights are attached to all shares

4. The same rate of dividend is paid to all shares

5. No dividends have been waived since the company was formed

[northernladuk]

This is the full list of questions, isn't the 'class' covered elsewhere?

1. All owned shares are ordinary shares only

2. There are no shares owned by anyone other than spouses or civil partners

3. The same rights are attached to all shares

4. The same rate of dividend is paid to all shares

5. No dividends have been waived since the company was formed

Surely if you tick all of them you don't need cover?

[Gaz_M]

Surely if you tick all of them you don't need cover?

How does the insurance ever exist if that's the case?

[malvolio]

How does the insurance ever exist if that's the case?

Because people pay money to have it?

[Gaz_M]

Anyway, if anybody can help to answer my original question it would be most appreciated. Thanks to TheFaQQer for your reply.

[TheFaQQer]

This is the full list of questions, isn't the 'class' covered elsewhere?

1. All owned shares are ordinary shares only

2. There are no shares owned by anyone other than spouses or civil partners

3. The same rights are attached to all shares

4. The same rate of dividend is paid to all shares

5. No dividends have been waived since the company was formed

No, you could have an ordinary class A share, and an ordinary class B share. They could give the same rights, but have a different dividend rate.

[TheFaQQer]

Surely if you tick all of them you don't need cover?

Just because you tick the boxes, do you think that is always enough to see off HMRC without a fight?

If you are facing an investigation, no matter how right you are, it's going to cost you money to get rid of HMRC unless they just walk away from an S660 case these days.