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[northernladuk]

Depends on the policy. I think the PCG offering covers the cost of representing you during the investigation but the tax and penalties are on your own head.

Other policies like TLC35 from QDOS appear to cover the tax liability so might be worth a look.

QDOS said the following in this thread...

http://forums.contractoruk.com/accou...insurance.html

Actually, the policy does cover the back tax. It covers all tax, NI, interest and penalties in respect of IR35 enquriries - i.e. everything (up to the indemnity limit, of course).

The policy is not insuring any kind of criminal fine or penalty. As you will see in Lisa's link, whilst criminal fines/penalties are uninsurable, civil fines or penalties are generally viewed as insurable provided they have not arisen as a result of fraud, dishonesty or a deliberate act.

Our policy specifically excludes any claim which arises as a result of fraud or dishonesty, and contains a further exclusion in respect of circumstances where public policy would prevent the application of insurance.

The TLC35 insurance was constructed by ex-HMRC inspectors and was reviewed and approved by insurers prior to being released to the market a number of years ago.

Am sure we had a big thread about exactly what it covered before as well.