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Liability insurance/sickness when inside

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    Liability insurance/sickness when inside

    If the current trend continues and most big private sector clients deem contractors inside, does the contractor need to still purchase insurances? Seems like the fact you have the insurances is a material pointer that you are not a disguised permie? Also what about sickness and holiday pay, is the client is saying you are really a permie and taxed like one, then surely they are due the same benefits?

    #2
    Originally posted by Unix View Post
    If the current trend continues and most big private sector clients deem contractors inside, does the contractor need to still purchase insurances? Seems like the fact you have the insurances is a material pointer that you are not a disguised permie? Also what about sickness and holiday pay, is the client is saying you are really a permie and taxed like one, then surely they are due the same benefits?
    What current trend? Which big private sector clients have deemed all contractors inside?

    Having insurance or not having holiday/sickness benefits are both very week arguments for not being a disguised employee for tax purposes.

    Whether you still need to purchase insurances if inside IR35, which insurances do you mean? Public Liability, IR35?
    Last edited by Paralytic; 11 October 2019, 10:15.

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      #3
      Originally posted by Unix View Post
      If the current trend continues and most big private sector clients deem contractors inside, does the contractor need to still purchase insurances? Seems like the fact you have the insurances is a material pointer that you are not a disguised permie? Also what about sickness and holiday pay, is the client is saying you are really a permie and taxed like one, then surely they are due the same benefits?
      I'm not sure about insurances but I think your employment status and tax status are separate in HMRC's eyes. I.e. you can be classed as an employee for tax purposes when inside IR35 but not qualify for any of the benefits like holiday pay.

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        #4
        Originally posted by Paralytic View Post
        What current trend? Which big private sector clients have deemed all contractors inside?

        Having insurance or not having holiday/sickness benefits are both very week arguments for not being a disguised employee for tax purposes.

        Whether you still need to purchase insurances if inside IR35, which insurances do you mean? Public Liability, IR35?

        Public liability.

        This move is going to cause utter chaos, good contractors will walk leaving the dregs. The result will be TSB level fiascos every week. Combine this with Brexit and you have a recipe for a clown show.

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          #5
          Originally posted by Unix View Post
          Public liability.
          If Inside IR35, you're unlikely to go via a Ltd company, so there's no need for any Ltd company to have PL insurance (for the purposes of that specific engagement).


          Originally posted by Unix View Post
          This move is going to cause utter chaos,
          What move? What current trend? Which big private sector clients have deemed all contractors inside?


          Originally posted by Unix View Post
          good contractors will walk leaving the dregs. The result will be TSB level fiascos every week. Combine this with Brexit and you have a recipe for a clown show.
          I often hear statements such as this. The issue with it is that everyone thinks they are one of the good contractors.
          Last edited by Paralytic; 11 October 2019, 10:55.

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            #6
            If you go via a brolly then, as you're considered their employee, they would provide professional indemnity insurance. Public liability is a bit of an odd one as contractors rarely have clients visit their business so you could say it's not required today. Brollys probably offer that too, can't remember as it's been a while.

            Sickness may be offered by brollys - some already take a little out of your day rate and put it aside so you can claim holiday pay. Temp agencies have done this for a long time too and it may be that you would follow that route. Note this doesn't create new money - you receive a little less and then get it back at a later date.

            What you wouldn't get is statutory sickness because you are not an employee in the benefits sense, you are an employee for tax purposes only.

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              #7
              Originally posted by ladymuck View Post
              If you go via a brolly then, as you're considered their employee, they would provide professional indemnity insurance. Public liability is a bit of an odd one as contractors rarely have clients visit their business so you could say it's not required today. Brollys probably offer that too, can't remember as it's been a while.

              Sickness may be offered by brollys - some already take a little out of your day rate and put it aside so you can claim holiday pay. Temp agencies have done this for a long time too and it may be that you would follow that route. Note this doesn't create new money - you receive a little less and then get it back at a later date.

              What you wouldn't get is statutory sickness because you are not an employee in the benefits sense, you are an employee for tax purposes only.
              This will be challenged in the courts, it's clearly unfair, you can't be considered an employee in one sense but not the other.

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                #8
                Originally posted by Paralytic View Post
                If Inside IR35, you're unlikely to go via a Ltd company, so there's no need for any Ltd company to have PL insurance (for the purposes of that specific engagement).




                What move? What current trend? Which big private sector clients have deemed all contractors inside?
                KUATB

                ‘Domino effect’ of IR35 reform bites, as Lloyds, Barclays and GSK stop hiring limited company contractors

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                  #9
                  Originally posted by Unix View Post
                  This will be challenged in the courts, it's clearly unfair, you can't be considered an employee in one sense but not the other.
                  It is indeed being challenged in courts.

                  Fighting HMRC and IR35

                  If you're that concerned and confident, throw some money in - the chap is doing the difficult job for you.
                  "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
                  - Voltaire/Benjamin Franklin/Anne Frank...

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                    #10
                    Link please for where Lloyds or Barclays (or for that matter GSK) have deemed contractors inside.

                    Otherwise, please KUATB.

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