Contract Review

[christhedon]

Hex,

What was the outcome of this? Who did you use and what were your after thoughts?

ALSO: Having spoken to some of these IR35 contract reviewers there appears to be some difference

1) They cost different money - ranging £75 - £210
2) Some of them explicitly state they will negotiate with the agent until the contract is changed. Although the ones that don't I've rang them and they say they "can". One of the firms Accountax I rang twice and first they said they will liase with the agent and the next person I rang said they wouldn't.

I've just asked PCG if there are prerequisites for being able to use their insurances under the PCGPlus membership and am awaiting a response.

Aside from the two points mentioned above what are the differences between the companies Hex outlined in his original post????

Furthermore, what are peoples thoughts on getting Qdos insurance that will pay out if you lose a IR35 case? (Something which PCG does not cover).

Thanks,

Chris

[lawspeed]

Survive35 Tax-Safe Insurance

Our review service, if deemed a 'Pass', confirms approval of the engagements for the purposes of taking out Survive35 Tax-Safe insurance.

This insurance underwrites the actual IR35 tax loss (tax, NIC's, interest and penalties) that may arise from a Revenue investigation. The policy is provided by the same insurers that provide the PCG PEI and PCGPlus offerings so it dovetails with them perfectly.

[malvolio]

I've just asked PCG if there are prerequisites for being able to use their insurances under the PCGPlus membership and am awaiting a response.

None - you have to be a member, not unreasonably. It does not cover any owed back tax or penalties in the case of a loss, but then those that do won't cover you unless they're pretty sure that will never happen becuase you are clearly outside IR35.

The other thing to watch is that some cover is on a contract-by-contract basis, and given investigations can go back 6 years, that could get unweildy. Better by far to have the PCG-style blanket coverage and understand how to stay out of IR35's clutches in the first palce.

[christhedon]

The only prequisite for their (PCGs) IR35 insurance is that you are not being investigated by HMRC before...

I also spoke to Qdos (they don't use lawyers but tax specialists. I'm told ex IR persons in some instances).

Qdos IR35 contract review service does not generally include contract negotiation furthermore they have two options:

1) A review to say pass or fail
2) A review which gives all the details of the contract

Passing either would mean that you could apply for their IR35 insurance which covers everything.

Thought since I've been asking lots of questions, I'd post some of my findings.

Any other opinions or 'facts'/observances on these IR35 review companies would be good.

Thanks,

Chris

[malvolio]

Ermm, the PCG is not a company, in case you hadn't noticed, and is not primarily an insurance source, which is why what it provides is different to the general market place. In all such things, you have to be certain you are comparing like with like. You can extend PCGPlus insurance (discounted through Abbey) to get coverage for tax and penalties, if you're really paranoid, but most don't bother.

You should also ask yourself if the QDOS-type example is valid. If they are content you are outside IR35, why do you need the extra premium and cover for penalties and back tax? If the review means anything at all, it is that the penalties will never arise (actually, getting an opinion on your contract status means penalties won't arise anyway, come to that, as per Hector's own rules).

Perceived and long-standing wisdom is that negotiated reviews should be done by B&C, Accountax or Lawspeed, unless you really know what you're looking at and can argue for yourself. Smart people get their insurance as part of their PCG membership, otherwise Abbey or QDOS/Shout99 are probably the other major players.

[christhedon]

Who is Hector?

[malvolio]

You are not serious... I thought everyone knew the original taxman, who set up shop in 1912 in a small office just off Great George Street, was a small chap with a bowler hat and a small moustache called Hector Higginbotham. As the service expanded, he had to recruit more people to keep up, who naturally became known as Hectors.