QDOS IR35 insurance

[TheFaQQer]

Well I've seen it recommended on here and by some accountants/IR35 consultants to cover the period until the company is struck off, in case the closure sparks an IR35 inquiry, however slim a chance that may be.

It's worthwhile having some protection for the year after the end of the tax year in which you close down. Strictly speaking, HMRC have six years to come after you so if you are paranoid you could go for that length of cover.

Depending on who is providing the advice, some will say that Qdos will be better than PCG because they cover different things. It depends on how likely you think you are to lose.

[malvolio]

It's worthwhile having some protection for the year after the end of the tax year in which you close down. Strictly speaking, HMRC have six years to come after you so if you are paranoid you could go for that length of cover.

Depending on who is providing the advice, some will say that Qdos will be better than PCG because they cover different things. It depends on how likely you think you are to lose.

Yeah. Essentially, PCG cover everything...

[TheFaQQer]

Yeah. Essentially, PCG cover everything...

Oh, I must have missed the bit in the IPSE rebranding where they announced that they would cover tax, interest and penalties like the TLC35 policy does....

[malvolio]

Oh, I must have missed the bit in the IPSE rebranding where they announced that they would cover tax, interest and penalties like the TLC35 policy does....

Nobody has ever claimed on that policy, and I still doubt you'd get cover if there was the slightest risk that you would fail an investigation. And Survive35 from Abbey gives the same assurance, linked to your PCG membership, If you want to go that way.

And it doesn't pay the tax, only the extra tax plus interest. As long as you've taken care to ascertain your position wrt IR35 - and having a review covers that off - HMRC won't charge you penalties: all you have done in their eyes is misunderstood your actual position if you lose. Which nobody has.

IMVHO I would rather insure against being struck by a meteorite: at least that has actually happened.

[TheFaQQer]

Nobody has ever claimed on that policy,

Not true. Qdos haven't had to pay out for the tax, NI and interest, but since the policy covers the cost of investigation, then people have made claims on the policy.

and I still doubt you'd get cover if there was the slightest risk that you would fail an investigation. And Survive35 from Abbey gives the same assurance, linked to your PCG membership, If you want to go that way.

Well, it's not clear how much of a discount is offered, but Abbey Tax starts at £329 per contract compared to Qdos £360 per year. So if you had more than one contract you wanted protecting in that last year, you would be better off with Qdos unless the PCG saving is huge, which I doubt.

And it doesn't pay the tax, only the extra tax plus interest. As long as you've taken care to ascertain your position wrt IR35 - and having a review covers that off - HMRC won't charge you penalties: all you have done in their eyes is misunderstood your actual position if you lose. Which nobody has.

It covers the "tax, NIC, penalties and interest for which you are liable", according to their website. I'm not sure what you think isn't covered, but that's what the website says.

IMVHO I would rather insure against being struck by a meteorite: at least that has actually happened.

Statistically, you are probably right. But you're more likely to be hit by a meteorite than to have an IR35 or S660 investigation, so why bother with PCG membership at all?

[kaiser78]

posted in wrong thread, so have moved...

[squirrel99]

When you have an IR35 insurance with QDOS why should one bother to have new contracts reviewed?

I have IR35 insurance with Qdos. They reviewed my contract and said that wording about substitution is not strong enough. The end client didn't agree to change the wording, so the option was to sign it as it is or to leave it.

I called Qdos insurance and asked whether their insurance will still protect me and the answer was not for this contract

So if I wouldn't have my contract reviewed, I would have thought that I have insurance and I was safe. However, should HMRC investigate me, Qdos wouldn't defend me

Better to find out early.

Btw i finally got the best of both worlds - Qdos IR35 insurance agreed to cover me if I can get a client to send an email confirming that I can offer a substitute should I not be available for work.

[mudskipper]

Was this a while ago? Just last week, qdos confirmed the cover is unconditional.

[squirrel99]

Was this a while ago? Just last week, qdos confirmed the cover is unconditional.

Nope, this was on Friday Qdos said the clause in my contract re substitution is not strong enough and therefore their insurance won't cover this particular contract.

Their insurance is not unconditional, because when you buy it you agree that you have a right to substitute.

Honestly, I would have thought the wording is fine and I can offer a substitute... but obviously from legal side the wording was not strong enough for Qdos to defend me in case of investigation. I'll be checking with their IR35 insurance team before signing any contracts from now on.

[NibblyPig]

I literally asked them directly on this forum and got a direct response saying it was unconditional.

I even posted that I never trust anyone in insurance because they are all smiles, and they assured me the opposite.

What a surprise

Hi there

Perfectly valid and common questions. To confirm:

• The TLC35 policy is not offered based on (or in any way reliant on) your written contract

• The 'prospects of success' clause is standard in insurance wordings. In reality it is highly unlikely it would ever be enacted at the outset for standard HMRC/IR35 enquiries

• The 'policy will not cover' excerpt is more about knowledge of any existing HMRC action, i.e. you were already under enquiry when you took out the policy

As I've said before, if we rejected claims or refused to cover someone it would quickly be common knowledge.

Any further questions please let me know.

Link to thread: http://forums.contractoruk.com/accou...s-sketchy.html


This annoys me more because I was about to purchase their insurance product as I need a review for an upcoming extension