Reply to: Cover for tax investigation, facts?

[ChimpMaster]

PCG Plus (£220 + VAT) covers you for any tax-related investigation, full stop, including the new business records checks. Add in freebies such as tax and legal helplines, agency default cover and jury service compensation (plus a bundle of other stuff and discounts), it really is a no-brainer.

Hence why I went for PCG+ earlier this year. I've been contracting for several years but never had insurance cover until recently - for the sake of £200 or so, it really is a no brainer. Regardless of IR35, you want to have professional representation for the everything else.

[malvolio]

Thanks Malovio - Does this insurance policy cover standard routing tax inspections (which are carried out at random)

I am less worried about IR35 but much more concerned that I will be picked at random for investigation into tax affairs and have to provide lots of information - The costs of this can easily be 1000's

PCG Plus (£220 + VAT) covers you for any tax-related investigation, full stop, including the new business records checks. Add in freebies such as tax and legal helplines, agency default cover and jury service compensation (plus a bundle of other stuff and discounts), it really is a no-brainer.

[DeludedAussie]

Same kind of numbers from Abbey as well. Which only supports my long-standing assertion that people are insuring for something that almost certainly won't happen. Comforting, but expensive...

Thanks Malovio - Does this insurance policy cover standard routing tax inspections (which are carried out at random)

I am less worried about IR35 but much more concerned that I will be picked at random for investigation into tax affairs and have to provide lots of information - The costs of this can easily be 1000's

[malvolio]

I'm saying none occurred.

We've defended over 1,300 status cases, the majority of which will have held some form of insurance (either TLC or a more basic level of cover). Off hand I don't know what the split is.

Same kind of numbers from Abbey as well. Which only supports my long-standing assertion that people are insuring for something that almost certainly won't happen. Comforting, but expensive...

[Qdos Contractor]

Are you saying you cannot comment on the liabilities portion or that none occured?

Exactly how many cases have you defended that were wholly claimable on the TLC policy ?

I'm saying none occurred.

We've defended over 1,300 status cases, the majority of which will have held some form of insurance (either TLC or a more basic level of cover). Off hand I don't know what the split is.

[DeludedAussie]

Not on the liabilities portion, no. We've defended plenty of cases and thankfully (for the contractors involved) these have been successful.

The recent figures regarding the small number of enquiries that have been carried out is well documented. We all know IR35 is going to change for the better (hopefully) soon, but the number of status cases will probably increase as HMRC put the improved legislation to the test. And I'm saying that as a tax consultant, not an insurance salesman.

Just for the record, we've not pulled out of covering/paying any claims either!

Are you saying you cannot comment on the liabilities portion or that none occured?

Exactly how many cases have you defended that were wholly claimable on the TLC policy ?

[Qdos Contractor]

Three years later - Can QDOS confirm whether they paid out on any policy now?

And what the case involved?

Not on the liabilities portion, no. We've defended plenty of cases and thankfully (for the contractors involved) these have been successful.

The recent figures regarding the small number of enquiries that have been carried out is well documented. We all know IR35 is going to change for the better (hopefully) soon, but the number of status cases will probably increase as HMRC put the improved legislation to the test. And I'm saying that as a tax consultant, not an insurance salesman.

Just for the record, we've not pulled out of covering/paying any claims either!

[DeludedAussie]

Think I covered this particular question earlier in the thread, but just to reaffirm that we would never attempt to pull out of paying any claim. First and foremost we are tax specialists and have been able to offer policies like TLC35 off the back of our expertise.

Lewis is absolutely spot on in his posts. IR35 enquiries are becoming more difficult to defend and, personally, I will actually be surprised if we don't have to pay out on the TLC policy at some point in the near future.

Give us a call if you would like to have a chat about it. We are quite friendly!

Three years later - Can QDOS confirm whether they paid out on any policy now?

And what the case involved?

[Qdos Contractor]

As I'm already a PCG+ member with Investigation fee cover, would the Tax Liability Premium be reduced accordingly?

No - we're not affiliated with the PCG and our underwriters stipulate that we have to carry out all defence work for any liability claim to be covered.

[VinnyB]

As I'm already a PCG+ member with Investigation fee cover, would the Tax Liability Premium be reduced accordingly?

[Qdos Contractor]

1) If I am on 12K director salary at the time of taking the insurance, and next year the salary increases to 16K, will my excess automatically reduce from £500 to £250? Do I need to inform Qdos at the time of this change?

You will have the opportunity to amend it at any point, including on renewal when you'll be able to confirm all facts declared in the initial proposal.

2) Does the actual excess depend on the salary level in effect at time of the enquiry, or does it depend on the salary level in that contract which is the main subject of enquiry?

It is the salary level in affect at the time of an enquiry - we believe that it increases the chances of investigation.

3) I assume that there is no excess for the normal £99 Tax Investigation cover, and the tax investigation cover relates to any tax investigation issue (like PAYE, S660 etc etc), and not only IR35. Please confirm.

Correct on both counts.

[Pegasus]

[QUOTE=Qdos Consulting;664215]
£5k - £9.5k salary = £750 excess
£9.5k - £15k = £500
£15k+ = £250

Note that the excess is only payable if we pay out on the liabilities (not the representation).
QUOTE]

Hi Ados,

A few quick questions:

1) If I am on 12K director salary at the time of taking the insurance, and next year the salary increases to 16K, will my excess automatically reduce from £500 to £250? Do I need to inform Qdos at the time of this change?

2) Does the actual excess depend on the salary level in effect at time of the enquiry, or does it depend on the salary level in that contract which is the main subject of enquiry?

3) I assume that there is no excess for the normal £99 Tax Investigation cover, and the tax investigation cover relates to any tax investigation issue (like PAYE, S660 etc etc), and not only IR35. Please confirm.

Thanks.

[Bumfluff]

£99 for representation only, or £355 for representation and IR35 liabilities. You can pay monthly at no extra cost & all cover is fully retrospective.

If I went for the TLC cover and completed the questionaire but based on my answers you would not cover me, would you still allow me to take the £99 cover ? I ask because I assume that if you won't let me take the TLC cover you feel I fail IR35 ?

[TheFaQQer]

I have already got my Contract and Working Practices reviewed and both of them are outside IR35. At Qdos website, I see that the tax investigation insurance is £99 and the Tax Liability cover is £355.

As ratewhore has pointed out, it's FROM £355. Mine came it at £490 this year.

[Qdos Contractor]

1, does the TLC cover my accountants cost in any IR35 investigation, if yes, up to what amount?

Not quite - it covers our (Qdos') representation costs for any enquiry (not just IR35). If, however, we needed documentation or information from your accountant and this incurred a fee, it would also be covered under the policy.

2, I dont currently have Prof Insurance (although have in the past), if I dont renew this is it a 'fail' for TLC?

No, it is beneficial but not a stipulation. We would never fail an application because PI wasn't in place.

3, Must Prof Insurance be taken out before TLC can be accepted, assuming other questions are answered such as to qualify for TLC?

As above, no.