Reply to: QDOS IR35 insurance

[Qdos Contractor]

A consultant will give you a call this afternoon.

[northernladuk]

How about ring them?

[tvr450]

Raising a claim

Hi folks, just wondered how long it takes to start a claim normally.

I opened a case two weeks ago, they came back saying I did not have a policy, so I sent my policy document.

It has been a week now and no contact.

I did chat to QDOS via the website chat - but they said it's a different department and they could not help.

Any suggestions welcome please.

[fidot]

Isn't it Bauer and Cottrell who do the renegotiation or do they draw a blank sometimes too?

Bauer and Cottrell have reviewed and negotiated all myCo's contracts and have always been able to negotiate the changes they and I (re non-IR35 issues) have required.

[squirrel99]

Qdos also negotiate on your behalf, but in my case this was non-negotiable as the wording was provided by the end client who didn't agree to be flexible.

[PerfectStorm]

Isn't it Bauer and Cottrell who do the renegotiation or do they draw a blank sometimes too?

[squirrel99]

Qdos - I appreciate all your help - I am happy with how things were resolved.

I am just thinking that 'perception' is a very vague term. i.e. I would have thought that as long as my contract includes substitution clause TLC35 covers me - my perception is that I can offer a substitute as this is what was agreed in writing.

But if the wording about substitute is 'not strong enough' it means TLC35 is not valid. So if someone purchases TLC35 with assumption that it is unconditional they might end up in trouble later - when they are investigated and TLC35 doesn't cover them.

If they have never used a substitute, they won't be able to prove that this was a genuine working practice (unless they thought about getting the end client to send an email to confirm this).

I am happy about TLC35 - no doubt about that. I just don't think it's unconditional as it is sometimes perceived. I will always get my contract reviewed, ask end clients to confirm substitution is possible as a working practice, and I will always double check that each of my contracts are covered by TLC35 before signing them

But that's just extra careful me

[Qdos Contractor]

There seems to be some confusion here and I apologise if I've propagated it - as I hope many will testify I'm always completely open about how our insurance products work. I said the policy isn't reliant on the written contract. Later in the same thread I said it was based on 'your perception of your actual working practices' - see here.

You can see the statements you confirm by adding the product and clicking continue on our online shop - you don't need to register or enter any details.

Without going into specifics on your query Squirrel, it was surrounding your client's interpretation of the substitution clause rather than the clause itself.

[squirrel99]

I share your feeling - after reading Qdos responses on this forum I was also under impression that it is unconditional.

[NibblyPig]

I literally asked them directly on this forum and got a direct response saying it was unconditional.

I even posted that I never trust anyone in insurance because they are all smiles, and they assured me the opposite.

What a surprise

Hi there

Perfectly valid and common questions. To confirm:

• The TLC35 policy is not offered based on (or in any way reliant on) your written contract

• The 'prospects of success' clause is standard in insurance wordings. In reality it is highly unlikely it would ever be enacted at the outset for standard HMRC/IR35 enquiries

• The 'policy will not cover' excerpt is more about knowledge of any existing HMRC action, i.e. you were already under enquiry when you took out the policy

As I've said before, if we rejected claims or refused to cover someone it would quickly be common knowledge.

Any further questions please let me know.

Link to thread: http://forums.contractoruk.com/accou...s-sketchy.html


This annoys me more because I was about to purchase their insurance product as I need a review for an upcoming extension

[squirrel99]

Was this a while ago? Just last week, qdos confirmed the cover is unconditional.

Nope, this was on Friday Qdos said the clause in my contract re substitution is not strong enough and therefore their insurance won't cover this particular contract.

Their insurance is not unconditional, because when you buy it you agree that you have a right to substitute.

Honestly, I would have thought the wording is fine and I can offer a substitute... but obviously from legal side the wording was not strong enough for Qdos to defend me in case of investigation. I'll be checking with their IR35 insurance team before signing any contracts from now on.

[mudskipper]

Was this a while ago? Just last week, qdos confirmed the cover is unconditional.

[squirrel99]

When you have an IR35 insurance with QDOS why should one bother to have new contracts reviewed?

I have IR35 insurance with Qdos. They reviewed my contract and said that wording about substitution is not strong enough. The end client didn't agree to change the wording, so the option was to sign it as it is or to leave it.

I called Qdos insurance and asked whether their insurance will still protect me and the answer was not for this contract

So if I wouldn't have my contract reviewed, I would have thought that I have insurance and I was safe. However, should HMRC investigate me, Qdos wouldn't defend me

Better to find out early.

Btw i finally got the best of both worlds - Qdos IR35 insurance agreed to cover me if I can get a client to send an email confirming that I can offer a substitute should I not be available for work.

[kaiser78]

posted in wrong thread, so have moved...

[TheFaQQer]

Nobody has ever claimed on that policy,

Not true. Qdos haven't had to pay out for the tax, NI and interest, but since the policy covers the cost of investigation, then people have made claims on the policy.

and I still doubt you'd get cover if there was the slightest risk that you would fail an investigation. And Survive35 from Abbey gives the same assurance, linked to your PCG membership, If you want to go that way.

Well, it's not clear how much of a discount is offered, but Abbey Tax starts at £329 per contract compared to Qdos £360 per year. So if you had more than one contract you wanted protecting in that last year, you would be better off with Qdos unless the PCG saving is huge, which I doubt.

And it doesn't pay the tax, only the extra tax plus interest. As long as you've taken care to ascertain your position wrt IR35 - and having a review covers that off - HMRC won't charge you penalties: all you have done in their eyes is misunderstood your actual position if you lose. Which nobody has.

It covers the "tax, NIC, penalties and interest for which you are liable", according to their website. I'm not sure what you think isn't covered, but that's what the website says.

IMVHO I would rather insure against being struck by a meteorite: at least that has actually happened.

Statistically, you are probably right. But you're more likely to be hit by a meteorite than to have an IR35 or S660 investigation, so why bother with PCG membership at all?