Abbey Tax - Survive IR35 or whatever its called - and PS

**malvolio** · 7 February 2017, 09:23

Originally posted by psychocandy View Post

I've been telling fellow contractors here to join IPSE (even before this PS thing).

BUT I've always been of the opinion that, if HMRC get a piece of paper in their hand saying "Client says you're inside IR35" then its an impossible task to defend this. There is no way I can see this being defended.

Also, it opens up the chance of investigation into work done BEFORE April.

BUT, someone mentioned Abbey Tax and their product that guarantees they will pay even if they lose. Personally, I'm wondering if they'll withdraw this but surely they are going to be a little unwise to offer this going forward.

But then I guess if you sign up with them, and they take your money, then they've got pay up if (when!) you lose. Or am I missing something here?

Surely Abbey Tax are not this dull. They're going to end up paying out a fortune maybe.

Why? The law hasn't changed, IR35 is still subject to the same burden of proof. A client saying "We're treating you as IR35 caught" when you demonstrably aren't is going to have to prove it through the tribunal and appeals process. You don't get Abbey's cover (nor anyone else's) without them being pretty certain you're outside: all they are insuring against is their own mistake.

And it only takes one upper tribunal appeal success to nail the whole issue.

**northernladuk** · 7 February 2017, 09:33

This type of thing may cover you to some extent but don't forget even with it the investigation can take years and I can't imagine it's very pleasant so falling back on insurances is NOT an easy out if anyone is thinking it.

**jamesbrown** · 7 February 2017, 09:38

Agree with Mal insofar as existing contracts that were reviewed to be outside by Abbey are very likely to be outside in practice (they do a thorough review that includes WP). Not having the client onside is a major negative, of course (and an important reason to leave the PS), but it doesn't change the historical WP, ultimately. Going forward, it's moot, because PS contracts will not support an outside position in most cases, i.e. the Abbey product won't be available to you. Other companies have different criteria for their products (e.g. no review).

**jamesbrown** · 7 February 2017, 09:40

Originally posted by northernladuk View Post

I can't imagine it's very unpleasant

We're mostly soft southern shandies.

Abbey Tax - Survive IR35 or whatever its called - and PS