Reply to: How do you best mitigate against getting caught by IR35?

[Fred Bloggs]

Thanks Fred. I believe paying more into a pension wouldn't be a bad idea as it would mean there would be "lower hanging fruit" elsewhere.

Another idea: What would happen if you left as much as possible in the company for 6 years and then took it as divis on the basis that they can only go back 6 years? If they do come knocking, pay it into a pension.

You're welcome, as for how much my advice is worth, well, I offer no warranties Myself I'm putting a lump sum monthly into a Hargreaves Lansdown SIPP and I top it up at year end if there's any spare cash. At present I'm income shifting as much as I can but that might change. My aim is to keep very little cash in the business each year beyond that which is required to cover corporation tax etc. In answer to the question about paying 6 years of divis in one year- You'd pay a lot of higher rate tax. I only draw upto the 20% income tax threshold. (I "income shift" as well though).

[Hiram King Of Tyre]

Thanks Fred. I believe paying more into a pension wouldn't be a bad idea as it would mean there would be "lower hanging fruit" elsewhere.

Another idea: What would happen if you left as much as possible in the company for 6 years and then took it as divis on the basis that they can only go back 6 years? If they do come knocking, pay it into a pension.

[Fred Bloggs]

Yep, if they want the complete peace of mind we can offer TLC35 (providing their working practices are ok of course). I think it's inevitable that we will see some form of increase in TLC purchases and the risk for us obviously increases in hand with that.

Contrary to some assumptions, the premiums haven't increased and the conditions of the policy have remained the same. We will be advising clients of steps they can take to strengthen their case, but we won't be adding any further stipulations.

Actually, providing HMRC do not suddenly get a huge number of inspectors to chase up all the cases, then QDOS's own risk profile per policy could actually decrease if there are a lot more buyers of the policy. (Same or a bit more risk, same number of investigations, but a lot more policies to spread the risk over.)

[Qdos Contractor]

That's what I was getting at. I would assume then that you can help by offering TLC35 to them?

This is not cynicism, I think it is a very good product.

Yep, if they want the complete peace of mind we can offer TLC35 (providing their working practices are ok of course). I think it's inevitable that we will see some form of increase in TLC purchases and the risk for us obviously increases in hand with that.

Contrary to some assumptions, the premiums haven't increased and the conditions of the policy have remained the same. We will be advising clients of steps they can take to strengthen their case, but we won't be adding any further stipulations.

[Fred Bloggs]

Sorry, I just read QDOS above.

[Fred Bloggs]

Fred, on the pension idea, my accountant recommends that pension payments shouldn't exceed salary but I think that may be over cautious

I think you are over cautious. I believe that ghost was laid to rest last year according to an IFA on Shout99 a while ago. HTH.

[ratewhore]

I really haven't noticed a dramatic increase at all. We're getting a lot of calls from contractors asking about Dragonfly, IR35 and how we can help, but that's only to be expected.

That's what I was getting at. I would assume then that you can help by offering TLC35 to them?

This is not cynicism, I think it is a very good product.

[Qdos Contractor]

Just out of interest Mr QDOS, have you had increased uptake in TLC35 over the last week or so?

I really haven't noticed a dramatic increase at all. We're getting a lot of calls from contractors asking about Dragonfly, IR35 and how we can help, but that's only to be expected.

[ratewhore]

Just out of interest Mr QDOS, have you had increased uptake in TLC35 over the last week or so?

[Qdos Contractor]

Do QDOS also insure contractors in facilities such as Montpelier?

Probably not, although we'd happily review any specific scheme to assess the risk. Due to the considerable level of scrutiny such offshore schemes come under, it isn't an area our underwriters are particularly keen on.

[ChimpMaster]

Do QDOS also insure contractors in facilities such as Montpelier?

[Qdos Contractor]

I believe they removed the requirement to pay over £9K a while back.

It's been reduced to £5k now.

[Lewis]

I had a letter from Qdos this morning offering their TLC35. I think you do have to pay yourself £15 salary though don't you?

I believe they removed the requirement to pay over £9K a while back.

[ratewhore]

go permie, I'm surprised no-one mentioned that!!

[Hiram King Of Tyre]

I had a letter from Qdos this morning offering their TLC35. I think you do have to pay yourself £15 salary though don't you?