Do you take out IR35 Insurance?

[Kate Cottrell]

Ir35 in 2013

I agree with Malvolio. There has been an increase in IR35 investigations. There has also been a significant change in how these cases are handled, which has resulted in a dramatic decrease in consultancy hours. These days our average times are little more than a couple of hours if a good response has been made to HMRC's opening letter. Some firms (including ourselves) defend client's for free so I would be interested to know what your "bridge" is Russell.

Kate Cottrell
Bauer & Cottrell

[russell]

I agree with Malvolio. There has been an increase in IR35 investigations. There has also been a significant change in how these cases are handled, which has resulted in a dramatic decrease in consultancy hours. These days our average times are little more than a couple of hours if a good response has been made to HMRC's opening letter. Some firms (including ourselves) defend client's for free so I would be interested to know what your "bridge" is Russell.

Kate Cottrell
Bauer & Cottrell

Sigh.. do you have any evidence you can share?, also do you sell or benefit from the sale of IR35 insurance/checks? Unless you answer Yes and No then why should anyone believe you?

[kal]

Fair enough you did ask about it though, can I just ask everyone who signed up for IR35 insurance to PM me though, I have a bridge they may be interested in.

Naive at best. I take it you have home buildings insurance? The chances of your house falling down are very small but the couple of hundred quid a yr is worth it for the peace of mind no? I have PCG+ cover. Bought mainly for their IR35 legal assistance but the range of benefits that the £220 a year gives me makes it a no brainer!

[centurian]

Does QDOS operate some kind of shared scheme? I.e. if HMRC succeeded in changing the rules so that everybody was caught, and were determined to go back 6 years, would everybody get a very small share? Or would QDOS just go bust?

Given that this would take HMRC some time to execute, QDos would probably just stop offering renewals, or premiums would sky rocket due to the new risk profile, so the underwriters would only take a hit on the first few investigations before they adjusted their premiums, or dived out of the marketplace.

Remember that TLC only covers you for investigations started during that period, not for the contracts in that period. There is no guarantee that you can get insurance for the following 5 years needed to completely cover your liability.

[russell]

Naive at best. I take it you have home buildings insurance? The chances of your house falling down are very small but the couple of hundred quid a yr is worth it for the peace of mind no? I have PCG+ cover. Bought mainly for their IR35 legal assistance but the range of benefits that the £220 a year gives me makes it a no brainer!

Given you can't get a mortgage without buildings insurance and it covers more than just your house falling down it's a totally different thing.

Let me ask, do you have insurance to cover your salary/dividends if you are critically ill? Probably not, because it's expensive, that's because it's very possible.

[northernladuk]

Given you can't get a mortgage without buildings insurance and it covers more than just your house falling down it's a totally different thing.

Let me ask, do you have insurance to cover your salary/dividends if you are critically ill? Probably not, because it's expensive, that's because it's very possible.

I would add that the amount you pay for any other insurance depends on the level of risk and how much they will pay out. At the moment I pay the same amount of IR35 insurance as the eejit that sits next to me and still think you can opt in and out of IR35. Seems a bit odd to me that.

[kal]

Given you can't get a mortgage without buildings insurance and it covers more than just your house falling down it's a totally different thing.

Let me ask, do you have insurance to cover your salary/dividends if you are critically ill? Probably not, because it's expensive, that's because it's very possible.

I do have CI cover. And PCG+cover also covers more than IR35...

[SarahL2012]

Given you can't get a mortgage without buildings insurance and it covers more than just your house falling down it's a totally different thing.

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I haven't got a mortgage and I still have buildings insurance - I'd rather not find hundreds of thousands of pounds of my own money to pay for a rebuild if it burnt down / got flooded etc. I treat my PCG + membership in the same way. I'm pretty sure all my contracts are outside IR35, but if HMRC want to investigate me then for a few hundred quid a year it gives peace of mind regarding the legal costs.

[kal]

I haven't got a mortgage and I still have buildings insurance - I'd rather not find hundreds of thousands of pounds of my own money to pay for a rebuild if it burnt down / got flooded etc. I treat my PCG + membership in the same way. I'm pretty sure all my contracts are outside IR35, but if HMRC want to investigate me then for a few hundred quid a year it gives peace of mind regarding the legal costs.

Exactly, at the end of the day its the tax man and its 'guilty until proven innocent' with HMRC. Even if you are 100% outside it will cost thousands to prove it in a court of law, the PCG+ membership at £220 a yr is peanuts in case you ever get asked to join them in front of a Judge!

[russell]

I haven't got a mortgage and I still have buildings insurance - I'd rather not find hundreds of thousands of pounds of my own money to pay for a rebuild if it burnt down / got flooded etc. I treat my PCG + membership in the same way. I'm pretty sure all my contracts are outside IR35, but if HMRC want to investigate me then for a few hundred quid a year it gives peace of mind regarding the legal costs.

I too have building insurance but not IR35 because the chances of my building being damaged is not zero.

Do you have insurance for being abducted by aliens?