Reply to: QDOS Tax Investigation Insurance

[SueEllen]

If only that had already been answered in the thread, around about post 16...

Why bother reading and understanding a post if you don't have to?

[TheFaQQer]

I guess the real difference would show if when a claim is made on either, has anyone?

If only that had already been answered in the thread, around about post 16...

[SueEllen]

I guess the real difference would show if when a claim is made on either, has anyone?

If you search the forum using Google there are people on here who have made claims. They don't shout from the roof tops about it but there are threads with the information on.

Every single person who has used IPSE has been satisfied with their service. I've read one report where the poster was not satisfied with QDOS's actions towards him but as he was covered by IPSE as well, he was OK as they took the case on.

In all cases HMRC quietly dropped the investigation at some point usually years after they started it.

[SimonMac]

I guess the real difference would show if when a claim is made on either, has anyone?

[TheFaQQer]

IPSE and QDOS are different beasts.

QDOS is a commercial company - they sell insurance cover - you pick and choose and pay for just what you need.

IPSE is a not for profit organisation representing people who work for themselves. They fund this by offering two levels of membership - both provide the basic tax investigation, IPSE+ provides the business interruption protection too. https://www.ipse.co.uk/what-we-do

Horses for courses - depends what you want.

One other difference between the two is that I doubt a commercial company would have spent over £1 million taking a case to the highest court in the land to benefit significant numbers of contractors. But IPSE have, and would do again.

[northernladuk]

I've earned more than the price of TLC35 just playing on this thread lol.

Buy it and have done.

[mudskipper]

IPSE and QDOS are different beasts.

QDOS is a commercial company - they sell insurance cover - you pick and choose and pay for just what you need.

IPSE is a not for profit organisation representing people who work for themselves. They fund this by offering two levels of membership - both provide the basic tax investigation, IPSE+ provides the business interruption protection too. https://www.ipse.co.uk/what-we-do

Horses for courses - depends what you want.

[Contreras]

I'm getting lost with all these covers. They give 3 free contract checks with PI/PL cover but they also do a full check for £90. For a 1 day turn around it costs a bit extra. The IR35 cover I thought they did is TLC 35. Don't know anything about a basic cover unless something has changed recently. Either way, £240 is cheap enough for the TLC35 for me.

The "basic cover" is Tax Enquiry Insurance and, like IPSE+ (not standard IPSE), also covers PAYE compliance review.

The other one worth looking at is Jury Service and Legal Protection.

[SueEllen]

So to sum up in my own mind as this is very confusing, it seems that IPSE Plus membership + QDOS TLC35 cover are the way to go to provide the right level of cover for a 'standard' contractor setup, yes ?

No too much cover.

Choose IPSE+ and get your contracts reviewed by someone competent, which is not your accountant.

OR

Choose QDOS and make sure you follow their small print.

[NibblyPig]

So to sum up in my own mind as this is very confusing, it seems that IPSE Plus membership + QDOS TLC35 cover are the way to go to provide the right level of cover for a 'standard' contractor setup, yes ?

Depends what you want. Minimum risk would just be the QDos complete IR35 package, ensuring that you abide by their small print which last I checked required certain clauses to be present in your contract, and probably get the contracts reviewed and changes made prior to signing.

Acceptable risk might be to get investigation cover (to pay cost of representation) combined with contract review, which will be cheaper, and probably fine due to the reputation of QDos never losing a case and the fact they've reviewed it themselves.

Greater risk would be to skip reviewing your contracts and get some investigation cover to cover legal costs (but not fines if you are found in violation). This choice is only recommended because it makes NLUK sad. Personally I do this at the moment because I've had some tumultuous times with agents happy to drop you if you can't sign immediately and get to the client site ASAP, and I need the money atm because I am just starting out and funds are low, so reluctant to rock the boat. When I get to the stage that I can relax more and not be in a hurry to get into a job I will probably switch to the least risk option above. I'm familiar with the rules and criteria for IR35 so I ensure I have named deliverables, the usual boilerplate stuff also found in the sample contracts offered by IPSE, and work as if I were providing a service, not as an employee. I am happy with this level of risk atm, and it's up to what you decide how much risk you want.

The greatest risk is to pretend you don't know (or genuinely not know) what IR35 is, which is what more than 75% of contractors I know and have met are doing.

Whether you get cover from IPSE or QDos is up to you. I think for the full complete package, QDos is a bit cheaper (IPSE uses a 3rd party I think for its complete cover). For their investigation only cover, I think they were about the same (may have changed now) but IPSE offered stuff like jury cover.

Basically just compare them both and see because things have probably changed.

All my stuff is up for renewal in April so I will be shopping around too. Good luck.

[kaiser78]

So to sum up in my own mind as this is very confusing, it seems that IPSE Plus membership + QDOS TLC35 cover are the way to go to provide the right level of cover for a 'standard' contractor setup, yes ?

[TheFaQQer]

Remember this is the famous 'cover' that has never been paid out on...

Both Qdos and IPSE have successfully defended numerous cases, which would be covered by IPSE membership and Qdos IR35 investigation insurance.

Qdos haven't paid out under TLC35 because they haven't lost the case.

[PerfectStorm]

Remember this is the famous 'cover' that has never been paid out on...

[northernladuk]

Didn't realise QDos did a more basic package for IR35, thought they just did the whole lot. In that case you have a choice, I picked IPSE+ for the other fringe stuff like jury duty cover.

I'm getting lost with all these covers. They give 3 free contract checks with PI/PL cover but they also do a full check for £90. For a 1 day turn around it costs a bit extra. The IR35 cover I thought they did is TLC 35. Don't know anything about a basic cover unless something has changed recently. Either way, £240 is cheap enough for the TLC35 for me.

[NibblyPig]

I'd suggest you grow some... And quick. You are in a strong position being and a daybor so either way isnt going to phase anyone. You can get a QDOS review done in less than a day.

If you don't have the gumption to negotiate with clients what makes you think you know enough to review a contract?

IMO this is a poor situation opening you up to some very expensive risks for no reason whatsoever.

Didn't realise QDos did a more basic package for IR35, thought they just did the whole lot. In that case you have a choice, I picked IPSE+ for the other fringe stuff like jury duty cover.