Reply to: Do you take out IR35 Insurance?

[malvolio]

PCG don't pay your tax liabilities.

No, they take the view that such a thing is pretty much unlikely to be needed: if you have satisfied your insurer that the risk is acceptably low, you aren't going to need the insurance. Not that PCG sell insurance anyway.


And you can get comparable cover via your membership, at much the same cost.

[mudskipper]

As will PCG

PCG don't pay your tax liabilities.

[malvolio]

Probably Qdos if you have TLC, otherwise taxes plus penalties won't be covered if you go with PCG and they lose. Qdos will either decide to settle (to limit litigation costs where there is little chance of winning) or, if they think you will win, take it to the end.

As will PCG

[Zero Liability]

Curious about this one. If you received notification of an investigation, who would you apply to handle it for you in the first place? I was under the impression that they both stipulate that they should take immediate ownership of the case.

Probably Qdos if you have TLC, otherwise taxes plus penalties won't be covered if you go with PCG and they lose. Qdos will either decide to settle (to limit litigation costs where there is little chance of winning) or, if they think you will win, take it to the end.

[Sockpuppet]

Oh FFS... If you don't know the answer to that question, you're in the wrong job and should stop making yourself look foolish by arguing a subject you seem (ore pretend) to know nothing about.


IR35 uses employment tests to assess tax liabilities. End of. It says nothing about employment status.


And going back to an earlier daft comment, having a professional give you advice, build your defence and handle the question answering for you will almost certainly stop you losing. Every IR35 case that's been lost started with the worker trying a DIY approach.

+1

Don't know if the last but is true but it wouldn't surprise me at all if it was.

[zerosum]

PCG+ membership, and Qdos TLC35 just to be really certain that I have cover for any penalty as well.

Probably overkill, and I'm pretty certain that I'm outside and always have been, but for less than a day's billing, I figure it's a no-brainer.

Curious about this one. If you received notification of an investigation, who would you apply to handle it for you in the first place? I was under the impression that they both stipulate that they should take immediate ownership of the case.

[d000hg]

Legitimate company expense, so why wouldn't you?

Because company's money is still money... what kind of argument is "it's a legitimate expense" when spending money?

[7specialgems]

I never have, unless my old PCG membership included this the year I was a member, as I've been very happy I'm way outside, but a possible new contract is perhaps less clear.

I was interested what proportion of contractors are covered against HMRC inquiries and penalties in relation to IR35, and who the most popular providers of such cover are...

I have the QDos product in conjunction with a Pass Contract Review.

Miles cheaper than if I was investigated and found to be inside IR35.

Legitimate company expense, so why wouldn't you?

[russell]

Oh FFS... If you don't know the answer to that question, you're in the wrong job and should stop making yourself look foolish by arguing a subject you seem (ore pretend) to know nothing about.


IR35 uses employment tests to assess tax liabilities. End of. It says nothing about employment status.


And going back to an earlier daft comment, having a professional give you advice, build your defence and handle the question answering for you will almost certainly stop you losing. Every IR35 case that's been lost started with the worker trying a DIY approach.

Ok fair points, taking into account all the new information about cases increasing I now think there might be merit in taking PCG+ coverage. As a rational open minded person I allow my opinions to be changed by new evidence.

[d000hg]

I am a ltd company the same as my plumbers or corner shop, why shouldn't i be? I don't get paid sick pay/holiday pay, no work I get let go etc. If I get caught under IR35 and found guilty, will I be able to retrospectively claim my rights as an employee?

When trolling, the key is to remain believable.

[malvolio]

I am a ltd company the same as my plumbers or corner shop, why shouldn't i be? I don't get paid sick pay/holiday pay, no work I get let go etc. If I get caught under IR35 and found guilty, will I be able to retrospectively claim my rights as an employee?

Oh FFS... If you don't know the answer to that question, you're in the wrong job and should stop making yourself look foolish by arguing a subject you seem (ore pretend) to know nothing about.


IR35 uses employment tests to assess tax liabilities. End of. It says nothing about employment status.


And going back to an earlier daft comment, having a professional give you advice, build your defence and handle the question answering for you will almost certainly stop you losing. Every IR35 case that's been lost started with the worker trying a DIY approach.

[eek]

I am a ltd company the same as my plumbers or corner shop, why shouldn't i be? I don't get paid sick pay/holiday pay, no work I get let go etc. If I get caught under IR35 and found guilty, will I be able to retrospectively claim my rights as an employee?

Nope what HMRC and tax tribunals think isn't necessarily what your clientco and a court would think.

Furthermore by the time HMRC decide you are an employee your rights to sue your clientco would be well and truly time expired

[russell]

And this entire thread isn't about whether you'd win in court, only if you'd get investigated.

Yes of course, every single Ltd company needs to protect against IR35 You know damn well we're talking PSCs and 1-man-band companies here, not your local corner shop or any company which hires employees.

I am a ltd company the same as my plumbers or corner shop, why shouldn't i be? I don't get paid sick pay/holiday pay, no work I get let go etc. If I get caught under IR35 and found guilty, will I be able to retrospectively claim my rights as an employee?

[d000hg]

Depends where you live, but my point is its very unlikey to happen as is getting beaten in court over IR35.

And this entire thread isn't about whether you'd win in court, only if you'd get investigated.

No and I didn't say there were millions of PSC's, perhaps a basic course in comprehension might help

Yes of course, every single Ltd company needs to protect against IR35 You know damn well we're talking PSCs and 1-man-band companies here, not your local corner shop or any company which hires employees.

[Martin at NixonWilliams]

Without reading the 60+ posts on this thread... My view is that IR35 insurance or the likes of PCG+ membership are a must.

In some cases it may be clear that IR35 does not apply to you however where there is the slightest of doubts I think it is a small price to pay to cover what could potentially be a huge, unaffordable tax bill.