Having to upset clients just to stay on the right side of IR35

[KentPhilip]

I also have QDOS IR35 insurance just in case its not enough.

Then what is the problem if you are covered regardless?

[CheeseSlice]

Then what is the problem if you are covered regardless?

I think the OP is interested in both keeping the client happy and operating in a way that is compliant with the tax rules, so just letting them treat him as a permie and getting pushed around because he has IR35 insurance it isn't really an option, nor is it a good choice. Sorry if this isn't what you were implying here.

[KentPhilip]

I think the OP is interested in both keeping the client happy and operating in a way that is compliant with the tax rules, so just letting them treat him as a permie and getting pushed around because he has IR35 insurance it isn't really an option, nor is it a good choice. Sorry if this isn't what you were implying here.

Why isn't it an option? If he is caught by IR35 he'll have to pay extra tax, but will be able to claim it back from the insurance. Why isn't this an option that is just as good as not being investigated in the first place?

[northernladuk]

Why isn't it an option? If he is caught by IR35 he'll have to pay extra tax, but will be able to claim it back from the insurance. Why isn't this an option that is just as good as not being investigated in the first place?

Because it will be a long slow and painful process and just like any insurance product has a risk of not paying out. The standard QDOS policy only covers the first £50k and I bet many people don't check if that covers their liability or not. Sometimes a bit of prevention is much better than a cure.

There is a balance to be struck though that is for sure.

[Old Greg]

Because it will be a long slow and painful process and just like any insurance product has a risk of not paying out. The standard QDOS policy only covers the first £50k and I bet many people don't check if that covers their liability or not. Sometimes a bit of prevention is much better than a cure.

There is a balance to be struck though that is for sure.

Do we know if the QDOS policy has ever paid out (beyond legal representation)? We've had a few discussions over the years but I can't remember the outcome.

[CheeseSlice]

Why isn't it an option? If he is caught by IR35 he'll have to pay extra tax, but will be able to claim it back from the insurance. Why isn't this an option that is just as good as not being investigated in the first place?

Some more useful info here: http://www.pcg.org.uk/tax-investigation-faq

Read "weak case" and "reasonable prospect of success". Insurance isn't a get out jail card to be relied upon in the first instance.

[KentPhilip]

Because it will be a long slow and painful process and just like any insurance product has a risk of not paying out. The standard QDOS policy only covers the first £50k and I bet many people don't check if that covers their liability or not. Sometimes a bit of prevention is much better than a cure.

There is a balance to be struck though that is for sure.

Good point. Thanks