Do you take out IR35 Insurance?

[russell]

I realise I can't really add anything meaningful to this thread without it being considered heavily biased...but the above doesn't really tell the full story. Enquiries did indeed drop to 23 in y/e April 2011, but then rose to 193 in the first half of y/e April 2013.

We've got several cases on the go and HMRC have openly upped their resources dedicated to 'policing' IR35.

Do you have a link or any evidence of that rise? Surprised it hasn't made it's way to wikipedia yet.

[GazCol]

No, the chance of investigation is too small and I'm happy, with contract reviews, that I'm outside.

That would change if I were ever offered public sector contracts.

IR35 teams target public sector contractors | AccountingWEB

[Qdos Contractor]

Do you have a link or any evidence of that rise? Surprised it hasn't made it's way to wikipedia yet.

HMRC triples IR35 investigation activity :: Contractor UK

[northernladuk]

PCG+ membership, and Qdos TLC35 just to be really certain that I have cover for any penalty as well.

Probably overkill, and I'm pretty certain that I'm outside and always have been, but for less than a day's billing, I figure it's a no-brainer.

Same here. Sleeping easy for £500 of the company money it costs for both that is sitting there anyway is cheap in my mind.

[Pondlife]

No, the chance of investigation is too small and I'm happy, with contract reviews, that I'm outside.

That would change if I were ever offered public sector contracts.

IR35 teams target public sector contractors | AccountingWEB

Even when you're happy that you'd win, you still have to pay for the legal representation up front. IIRC it's somewhere in the region of £10-15K in legal fees to fight the case.

Maybe Mr(s) Qdos can comment?

[russell]

HMRC triples IR35 investigation activity :: Contractor UK

The source of that article is Bloomsbury Professional, I wonder if they are imparital or have a dog in the fight?

IR35 Defence Strategies 4/ed - Only £85.00 - Bloomsbury Professional formerly Tottel Publishing - law publisher, tax publisher, law books, tax books

[GazCol]

Even when you're happy that you'd win, you still have to pay for the legal representation up front. IIRC it's somewhere in the region of £10-15K in legal fees to fight the case.

Maybe Mr(s) Qdos can comment?

I have PCG membership for that, which includes legal representation - it's the insurance that pays backdated tax, NI, interest and penalties that I don't have.

[malvolio]

The source of that article is Bloomsbury Professional, I wonder if they are imparital or have a dog in the fight?

IR35 Defence Strategies 4/ed - Only £85.00 - Bloomsbury Professional formerly Tottel Publishing - law publisher, tax publisher, law books, tax books

I've heard similar from PCG's expert suppliers, so I agree with QDOS's earlier comment. Investigations are rising and will continue to do so; not having PEI of some form is a bad idea; even if you're solidly outside IR35 it can cost you several thousand just to prove it. And, of course, if you try to represent yourself you will have a fool for a client.

[jmo21]

I don't worry about IR35 too much now, but get contracts reviewed, have QDOS cover, and make sure to keep my working practices correct just to make sure.

[Qdos Contractor]

Even when you're happy that you'd win, you still have to pay for the legal representation up front. IIRC it's somewhere in the region of £10-15K in legal fees to fight the case.

Maybe Mr(s) Qdos can comment?

A full IR35 enquiry could take anywhere between 5 and 30 hours of a consultant's time to handle. More if it ends up at a tribunal.

So if you're paying, say, £150ph for representation it would end up being fairly expensive.