Do you take out IR35 Insurance?

[russell]

You think there are millions of PSCs? That would suggest at least 10% of the adult population are working in this way.

Lightning strike probability per person per year is about 1:500,000. Someone who likes to criticise others' basic statistics skills would be advised to check they are not out by an order of magnitude or two.

No and I didn't say there were millions of PSC's, perhaps a basic course in comprehension might help. Also think how HMRC defines you as a PSC without investigating first. Also the chances of you being taken to court for IR35 and having to pay the fees (something IR35 insurance covers you for) is much much lower than a case being opened.

[TheCyclingProgrammer]

I'm no fan of unnecessary insurances and I'm 99% confident that the way I operate (and my contract, based on the standard PCG contract) is completely out of IR35. Generally it's not something I worry about on a day to day basis.

With that said, and coupled with the fact that the chance of an investigation is relatively low, it would be easy to say "I don't need it". But I prefer to think of it this way: in the unlikely event of an enquiry, no matter how confident I was, would I want the responsibility of dealing with the enquiry myself or would I rather hander it over to a professional to take care of as quickly and efficiently as possible? I'd rather have the latter, which is one of the reasons why I renewed my PCG membership again this year.

[DirtyDog]

Yeah but that of an investigation most will fizzle out before it goes to court, it's more like 0.001%.

And the chances of being struck by lightening are....

[russell]

And the chances of being struck by lightening are....

Depends where you live, but my point is its very unlikey to happen as is getting beaten in court over IR35.

[DirtyDog]

Also the chances of you being taken to court for IR35 and having to pay the fees (something IR35 insurance covers you for) is much much lower than a case being opened.

Maybe you misunderstand IR35 insurance - it covers the cost of an investigation, and some policies also cover any penalties which would be due.

Preparing a case, whether that goes to court or not, costs time and money. Generally, significant time and money. If the case goes to court, and you have no insurance, who pays the costs? If the case doesn't go to court, and you have no insurance, who pays the costs?

[DirtyDog]

Depends where you live, but my point is its very unlikey to happen as is getting beaten in court over IR35.

Generally speaking, you are significantly more likely to have an IR35 investigation (whether it goes to court or not, and whether you win or not) than you are to be struck by lightening.

Again - where is your evidence that HMRC pay for any of the costs in preparing a case? Where is your evidence that HMRC pays for costs you incur answering their questions for a case which does not go to court?

[russell]

Generally speaking, you are significantly more likely to have an IR35 investigation (whether it goes to court or not, and whether you win or not) than you are to be struck by lightening.

Again - where is your evidence that HMRC pay for any of the costs in preparing a case? Where is your evidence that HMRC pays for costs you incur answering their questions for a case which does not go to court?

I never said they pay for preparing a case, again you seem to have trouble with basic comprehension. Where is your evidence it costs significant amounts of money to answer some questions? Sound like fear mongering to me. If you aren't confident in communicating your companies contractual agreements then you shouldn't be signing them in the first place. You hardly need a Oxbridge degree to understand IR35.

[Martin at NixonWilliams]

Without reading the 60+ posts on this thread... My view is that IR35 insurance or the likes of PCG+ membership are a must.

In some cases it may be clear that IR35 does not apply to you however where there is the slightest of doubts I think it is a small price to pay to cover what could potentially be a huge, unaffordable tax bill.

[d000hg]

Depends where you live, but my point is its very unlikey to happen as is getting beaten in court over IR35.

And this entire thread isn't about whether you'd win in court, only if you'd get investigated.

No and I didn't say there were millions of PSC's, perhaps a basic course in comprehension might help

Yes of course, every single Ltd company needs to protect against IR35 You know damn well we're talking PSCs and 1-man-band companies here, not your local corner shop or any company which hires employees.

[russell]

And this entire thread isn't about whether you'd win in court, only if you'd get investigated.

Yes of course, every single Ltd company needs to protect against IR35 You know damn well we're talking PSCs and 1-man-band companies here, not your local corner shop or any company which hires employees.

I am a ltd company the same as my plumbers or corner shop, why shouldn't i be? I don't get paid sick pay/holiday pay, no work I get let go etc. If I get caught under IR35 and found guilty, will I be able to retrospectively claim my rights as an employee?