IR35 Insurance

[psychocandy]

Wow, looks like I got here before Mal.

As he will no doubt remind everyone, PCG membership is much much more than simply insurance - it's nowadays having seated representation in at least 2 government committees and a lot more lobbying. It's support and advice if an agency is messing you about. Its about the community. It's contract templates. Its tax and acountancy advice lines. It's supplier discounts, and much more.

/blatantadvert

My accountant has offered me insurance for about £150. It covers additional costs of tax equiries etc but doesnt cover costs if you get caught.

I'm assuming thats what you get with PCG membership?

[Bumfluff]

Question on IR35 insurance;

I've used QDOS for my IR35 insurance for a good few years now but I'm thinking of switching to PCG, will the PCG insurance only kick in on contracts in place from when I signed up for them or will they cover me for previous years and other contracts ? I might be wrong but the QDOS insurance only seems to cover me for previous years if I keep on renewing with them so as soon as I don't renew anymore thats it no historical cover. I want to move to PCG but I don't want to end up in the position of having no cover for previous years unless I pay 2 lots of premiumns at the same time ?

Ta

[v8gaz]

Wow, looks like I got here before Mal.

As he will no doubt remind everyone, PCG membership is much much more than simply insurance - it's nowadays having seated representation in at least 2 government committees and a lot more lobbying. It's support and advice if an agency is messing you about. Its about the community. It's contract templates. Its tax and acountancy advice lines. It's supplier discounts, and much more.

/blatantadvert

[kevinlam]

I think qdos is the cheapest at the moment - £117 and you get 3 contract reviews, templates and a business hotline as a bonus
Freelancer Tax Protection

Don't know how it compares to PCG, last time I checked that option was much more expensive.

Thanks for the info. :-)

[Lumiere]

I think qdos is the cheapest at the moment - £117 and you get 3 contract reviews, templates and a business hotline as a bonus
Freelancer Tax Protection

Don't know how it compares to PCG, last time I checked that option was much more expensive.

[Hex]

Thanks. Do they really cover what they claim to cover or is it like any other insurances, when you need it, they keep pointing out everything is excluded in the policy?

Read the policy documents and make sure you know what is covered and what isn't.

[kevinlam]

PCG Membership gives you investigation insurance - pays the legal fees but does not pay tax, penalties etc if they find against you.

But because you have their investigation insurance (which is done through AbbeyTax) you can then get AbbeyTax Survive35 for about an extra £350 which does cover tax, penalties etc. They have to review your contract and working practices for you to qualify for this.

QDOS also do a similar cover - details are on their website.

Thanks. Do they really cover what they claim to cover or is it like any other insurances, when you need it, they keep pointing out everything is excluded in the policy?

[Hex]

PCG Membership gives you investigation insurance - pays the legal fees but does not pay tax, penalties etc if they find against you.

But because you have their investigation insurance (which is done through AbbeyTax) you can then get AbbeyTax Survive35 for about an extra £350 which does cover tax, penalties etc. They have to review your contract and working practices for you to qualify for this.

QDOS also do a similar cover - details are on their website.

[kevinlam]

I've also got mine via PCG - I paid £355 which covered IR35 and some other bits and bobs around HMRC investigations - you can get the simple IR35 insurance for a fair amount less

I think it is worth getting, I also got a good talk through of IR35 and the terms. Interestingly, when I took out the insurance, they looked at my contract to make sure it was IR35 compliant, but also you complete a questionaire around your working practices - your hours / how you work etc.

The insurance covers defence of the case as well as paying out if you get caught by IR35 (remember they can go back retrospectivly to previous years).

Thanks for the info I checked the terms and condition of the pcg ir35 insurance, it actually categorically says that they don't cover the payout in the failed case. Which I think is the most important aspect of the insurance, accountax does the comprehensive insurance for ir 35 including payout and everything but will cost around 1000 a year

[kevinlam]

Which level of PCG membership covers IR35? Do they cover the penalty and outstanding tax liability if the defence failed?

I've also got mine via PCG - I paid £355 which covered IR35 and some other bits and bobs around HMRC investigations - you can get the simple IR35 insurance for a fair amount less

I think it is worth getting, I also got a good talk through of IR35 and the terms. Interestingly, when I took out the insurance, they looked at my contract to make sure it was IR35 compliant, but also you complete a questionaire around your working practices - your hours / how you work etc.

The insurance covers defence of the case as well as paying out if you get caught by IR35 (remember they can go back retrospectivly to previous years).

[kevinlam]

I have a comprehensive accounting package from clearsky. Would that overlap the services from the ir35 insurance?

[Fred Bloggs]

Mine is with QDOS, certainly worth a look at them. Their customer service to date has been excellent, but I haven't claimed.

[SneakySimon]

IT35

I've also got mine via PCG - I paid £355 which covered IR35 and some other bits and bobs around HMRC investigations - you can get the simple IR35 insurance for a fair amount less

I think it is worth getting, I also got a good talk through of IR35 and the terms. Interestingly, when I took out the insurance, they looked at my contract to make sure it was IR35 compliant, but also you complete a questionaire around your working practices - your hours / how you work etc.

The insurance covers defence of the case as well as paying out if you get caught by IR35 (remember they can go back retrospectivly to previous years).

[pmeswani]

All,

I am new to contracting. Just setup a limited company and got my first contract. Just wondering how many of you are IR35 insruance covered?

Is it worth getting and how much do you pay for the cover?

Thanks.

I think I got mine through my PCG membership, but need to check to be sure.

I would highly recommend it, but it is only effective if you get your contract reviewed for IR35 and seen to be carrying out due dilligence, otherwise the insurance is pointless.

I don't know how long IR35 will be around in its current form, but I would take it out in case you get caught in its current form, or in its future incarnation.

[kevinlam]

All,

I am new to contracting. Just setup a limited company and got my first contract. Just wondering how many of you are IR35 insruance covered?

Is it worth getting and how much do you pay for the cover?

Thanks.