IR35 Insurance

[shields4459]

Hi all,

Given the latest budget announcement on IR35 was wondering what the thoughts where on IR35 insurance and it it was worthwhile? Noticed there is also an option with qdos to cover additional shareholders with income shifting in mind.

Thoughts and experiences would be appreciate

Thanks

[mudskipper]

Hi all,

Given the latest budget announcement on IR35 was wondering what the thoughts where on IR35 insurance and it it was worthwhile? Noticed there is also an option with qdos to cover additional shareholders with income shifting in mind.

Thoughts and experiences would be appreciate

Thanks

There's a few options available - insurance that provides you with representation if you are investigated, and insurance that covers any additional taxes due.

To date, HMRC win very few cases where the contractor is professionally represented. Very few cases are investigated at all. But this could change.

There's a few policies out there - Qdos, Abbey Tax, or IPSE+ membership which provides similar protection as well as other benefits (jury cover, agent going bust etc.)

[northernladuk]

Remember though your main focus is to understand IR35 and keep your working practices outside. The insurance will help when you get investigated but it's still going to be a very long and painful process. Thinking you don't need to do anything else just because you have insurance is naive at best. It's still your responsibility to make sure you are doing things right. How is your knowledge of IR35 in general. I'd argue most people that have a grasp of IR35 already have some sort of cover.

[WordIsBond]

Accountant's advice:
Get legal protection insurance, but don't get IR35 insurance. He said the risk of losing a case is virtually nil if you pay attention to what you are doing and have good representation, and buying the IR35 protection could look to HMRC as if you have a guilty conscience and think you have a problem. It's harder to credibly argue that you've considered it and are sure you are outside when you've paid for insurance to pay out in the event you lose a case.

I'm sure others would argue differently, but that was the advice I got. Until we see where this consultation goes, it seemed like good advice to me.

[northernladuk]

Accountant's advice:
Get legal protection insurance, but don't get IR35 insurance. He said the risk of losing a case is virtually nil if you pay attention to what you are doing and have good representation, and buying the IR35 protection could look to HMRC as if you have a guilty conscience and think you have a problem. It's harder to credibly argue that you've considered it and are sure you are outside when you've paid for insurance to pay out in the event you lose a case.

I'm sure others would argue differently, but that was the advice I got. Until we see where this consultation goes, it seemed like good advice to me.

Wow... I'd call that utter bollocks and be a bit disappointed if my accountant gave me that advice. You could argue it's virtually nil.... for now and the amount of grief being that one person caught for £200 a year plus other IPSE+ benefits is pretty cheap. Remember you are on a forum with at least three people that have been through investigations, one guy gave us an update recently on his two year investigation.

Since when did an accountant give you advice on how to run your business anyway? He doesn't care if you get caught or not, he mails you and forgets, you are the one that has to deal with it day in day out.

And that bit about HMRC thinking you have a guilty conscience? What a load of utter ******* rubbish for far too many reasons I can be arsed to go in to right now.

[jamesbrown]

Get legal protection insurance, but don't get IR35 insurance. He said the risk of losing a case is virtually nil if you pay attention to what you are doing and have good representation

I agree with your accountant up to that point. The rest is utter nonsense though.

[WordIsBond]

for now and the amount of grief being that one person caught for £200 a year plus other IPSE+ benefits is pretty cheap. Remember you are on a forum with at least three people that have been through investigations, one guy gave us an update recently on his two year investigation.

IPSE+ gives legal protection. He specifically said get that, and I did. He argued against TLC35 or something similar.

How many people (on this forum or elsewhere) represented by IPSE have lost an IR35 case and needed TLC35?

[shields4459]

Thanks for the comments guys useful especially around the type of cover. 😃

[SueEllen]

Accountant's advice:
Get legal protection insurance, but don't get IR35 insurance. He said the risk of losing a case is virtually nil if you pay attention to what you are doing and have good representation, and buying the IR35 protection could look to HMRC as if you have a guilty conscience and think you have a problem. It's harder to credibly argue that you've considered it and are sure you are outside when you've paid for insurance to pay out in the event you lose a case.

I'm sure others would argue differently, but that was the advice I got. Until we see where this consultation goes, it seemed like good advice to me.

I would change my accountant if I was getting advice like that.

Knowing people who have been investigated, HMRC do not know what representation you have until they receive your replies.

So you can buy what insurance you like as no one apart from you will know what it actually covers.

On my accounting records all my insurance comes under one column just stating something like main type of insurance in the policy e.g. PLI and firm name.

It's only if you deeper do you find out the full name of the insurance bundle.

Then you would have to go even further to find out what the insurance actually covers as you can alter lots of bundles as you wish.

So while you and I may have the same PLI mine could have different add-ons.

[malvolio]

IPSE+ gives legal protection. He specifically said get that, and I did. He argued against TLC35 or something similar.

How many people (on this forum or elsewhere) represented by IPSE have lost an IR35 case and needed TLC35?

Approximately none. HTH