QDOS IR35 Cover?

[kal]

But bear in mind that PCG cover is unconditional, and you can get the same payment protection cover from AbbeyTax via your membership (although not AFAIK at QDOS's rates). What you can't do, of course, is mix and match.

I have PCG+ membership and am pretty happy with it but like people have said the QDOS cover pays out if you lose as well as fighting your case whereas the PCG policy only ticks the 2nd box...

[malvolio]

I have PCG+ membership and am pretty happy with it but like people have said the QDOS cover pays out if you lose as well as fighting your case whereas the PCG policy only ticks the 2nd box...

Which bit of "you can get the same payment protection cover from AbbeyTax via your membership" are you having trouble with? And as has been mentioned, in some circumstances they are cheaper since they work on a per contract basis.

And there are other providers as well. None of whom have ever paid out on such a policy...

[TheFaQQer]

Which bit of "you can get the same payment protection cover from AbbeyTax via your membership" are you having trouble with?

The bit after it which says

(although not AFAIK at QDOS's rates)

[KentPhilip]

Just to add to what I said previously, I think that even if you are blatently IR35 caught, you can still use QDOS cover to protect yourself and not pay IR35. That QDOS uses the fact that HMRC investigates few cases and wins even fewer means that they can still make money whilst at the same time paying any back tax + penalties etc even if HMRC (perhaps correctly) think you are inside IR35.

I think what it does not cover is when you are already under investigation by them.

[malvolio]

Just to add to what I said previously, I think that even if you are blatently IR35 caught, you can still use QDOS cover to protect yourself and not pay IR35. That QDOS uses the fact that HMRC investigates few cases and wins even fewer means that they can still make money whilst at the same time paying any back tax + penalties etc even if HMRC (perhaps correctly) think you are inside IR35.

I think what it does not cover is when you are already under investigation by them.

So what you are saying is you want to buy insurance to pay off an illegal activity if you get caught...

[kal]

So what you are saying is you want to buy insurance to pay off an illegal activity if you get caught...

No we are not, its worth considering for peace of mind that is all, mind you I guess you are not in any way unbiased in your opinion!

[KentPhilip]

So what you are saying is you want to buy insurance to pay off an illegal activity if you get caught...

If you get caught by IR35 you haven't done anything illegal. Unless you deliberately try to falsify information provided to the revenue (in which case you might be jailed for fraud or tax evasion). This is because IR35 status is always only an opinion - they can't prove you have made a materially false statement that you are out when you are actually in, because there's nothing concrete in the rules.
Insurance is there to protect you from any number of things, including action by the state, so I don't see a problem using insurance to eliminate the risk of IR35.

[malvolio]

If you get caught by IR35 you haven't done anything illegal. Unless you deliberately try to falsify information provided to the revenue (in which case you might be jailed for fraud or tax evasion). This is because IR35 status is always only an opinion - they can't prove you have made a materially false statement that you are out when you are actually in, because there's nothing concrete in the rules.
Insurance is there to protect you from any number of things, including action by the state, so I don't see a problem using insurance to eliminate the risk of IR35.

Yebbut it's still a law: if you are deemed to be a disguised employee then you have to pay this amount of taxes on your gross. Not doing so while knowing that the law applies to your contract (as per" if you are blatently IR35 caught, you can still use QDOS cover to protect yourself and not pay IR35. ") is evasion.

I'm not biased either. My position has always been that you should know the rules, do the best you can to put yourself outside IR35 and have good representation if you need it: I don't care where it comes from but IMVHO the PCG Plus deal is commercially the best option: you may disagree but you would struggle to justify it on a cost basis.

However, penalties and tax payment cover is simply a waste of money. Again, IMVHO

[SueEllen]

If you get caught by IR35 you haven't done anything illegal. Unless you deliberately try to falsify information provided to the revenue (in which case you might be jailed for fraud or tax evasion). This is because IR35 status is always only an opinion - they can't prove you have made a materially false statement that you are out when you are actually in, because there's nothing concrete in the rules.
Insurance is there to protect you from any number of things, including action by the state, so I don't see a problem using insurance to eliminate the risk of IR35.

Hmmm no.

If I worked as a permie for Company X then took redundancy and came back as a contractor two months later doing the same job I would be clearly within IR35.

This kind of scenario was what the law was originally intended for.

[KentPhilip]

Hmmm no.

If I worked as a permie for Company X then took redundancy and came back as a contractor two months later doing the same job I would be clearly within IR35.

I would agree with you if that scenario on its own proved that you were inside IR35, but as we all know it is the totality of the situation that matters (right to substitution etc). There are some situations where you would be outside IR35. Since they cannot prove that the contractor should have been certain that he was within IR35, they cannot establish an intent, beyond reasonable doubt, to evade tax by declaring themselves outside of it. Hence there can be no criminal tax evasion conviction.

People are only convicted when they do things that are provably wrong, such as failing to declare income at all etc.