In the event of an IR35 enquiry from HMRC, workers may have to argue their case to show that the rules shouldn’t apply to them. This can be a lengthy, complicated process – which is why IR35 insurance is such a useful service to consider.
In this article, we’re going to look at Qdos IR35 insurance coverage to learn what it does and if it’s right for you.
What is Qdos IR35 insurance?
Qdos is a market-leading specialist tax consultancy with lots of experience handling IR35 legislation, which puts them in an excellent position to help people with IR35 enquiries. Their services include IR35 insurance, which is essentially tax liability cover for the contractor industry.
The reality is that many IR35 enquiries are lengthy and complicated, which is why it really benefits you to have a competent professional on your side if you have to work through an IR35 enquiry. Qdos IR35 insurance ensures that, in the event of an enquiry, you’ll have the financial support to pay any tax liabilities and have an expert on your side to fight your case for you.
The Qdos tax experts are renowned for their prowess in terms of IR35 defence, with over 1,600 successful cases in their name. So it’s definitely a useful solution if you’re concerned about IR35 enquiries.
They offer two distinct services – IR35 enquiry insurance and TLC35 tax liability insurance. We’ll have a look at these two services below:
What is IR35 enquiry insurance?
IR35 enquiry insurance, also known as tax enquiry insurance, is a form of coverage that gives you access to expert legal guidance and defence for HMRC enquiries in relation to IR35. The team at Qdos take care of all correspondence with HMRC throughout the proceedings so you don’t have to deal with the lengthy, complicated process.
It’s available for all limited company contractors and freelancers who operate as sole traders. If HMRC enquires about your tax accounts, it usually results in a time-consuming, often expensive process to find out if you’re paying the right amount of tax and National Insurance Contributions. Using tax enquiry insurance is a way to mitigate against the time and money lost through defending this type of enquiry.
What is included in IR35 enquiry insurance?
The IR35 enquiry insurance policy covers you for a number of situations. The company will represent you to the cost of up to £50,000 and will help you in the following circumstances:
- Any PAYE compliance reviews
- IR35 disputes
- PAYE or National Insurance Contribution disputes
- VAT disputes
- Section 660A disputes
- Other enquiries that relate to your tax returns
The coverage provides you with a free IR35 contract assessment and ensures that all claims are handled by ex-HMRC inspectors. You’ll also receive tax advice and guidance from their in-house team of tax experts. It covers previous tax years and will take you all the way through to tax tribunals if necessary.
What is tax liability cover (TLC35)?
Tax liability cover, also known as TLC35, is another form of insurance that covers you from the risks of IR35 enquiries. In the event that HMRC decides to open an enquiry into your tax accounts, you’ll be covered and supported by Qdos’s team of experts.
This includes enquiries such as PAYE compliance, VAT disputes, IR35 enquiries and other forms of HMRC enquiry. It also covers tax and National Insurance Contribution liabilities and associated interest of penalties if HMRC decide that you’ve gone against IR35 legislation.
TLC35 cover provides you with unlimited IR35 contract assessments, with claims handled by in-house experts who are all ex-HMRC inspectors. This is their most robust and comprehensive form of coverage and has an excellent reputation.
This coverage has varying indemnity limits that range from £25,000 to £250,000. This takes into account things like how long you’ve been contracting for, how many clients you’ve worked for and your average daily rates. Policy excess for this cover is set at £250.