Survive IR35 with peace of mind that you’re covered.
Every year, HMRC issue ‘Check of Employer Status’ letters challenging the IR35 status of a contractor’s engagements by typically picking the last full tax year, but HMRC are also very keen to go back into earlier years if they believe that a longer term engagement is inside IR35.
If you have insured via the Caunce O’Hara tax investigation and legal expenses insurance, you can rest assured that your defence costs will be covered. But if HMRC are successful in arguing that IR35 applies to any of your engagements, you will be left with an unwanted tax bill.
This is where Survive35 TaxSafe tax losses insurance can offer you the added protection that win or lose an investigation with HMRC, you won’t have a tax bill to pay.
Survive35 TaxSafe enables you to protect your ‘passed’ contracts and extensions and, if HMRC subsequently reclassified your engagement as ‘caught by IR35’, and will reimburse:
- Unpaid tax and NIC
- Interest
- Penalties
There are three straightforward steps to achieving complete peace of mind that your business and finances are protected:
- Have a contract review – you can get an opinion on any engagement which you wish to insure, whether it has concluded, it is your current assignment or one you are about to start. If our opinion is ‘outside’ IR35, you can insure the engagement(s).
- Purchase tax investigations insurance to meet the costs of your defence – Caunce O’Hara offer a comprehensive policy which ensures that whether you come under HMRC’ scrutiny, IR35 specialists from Markel Tax will fight your case all the way to Tax Tribunal if necessary, and you won’t have to pay.
- Purchase Survive35 to cover those engagements which you wish to insure – you pay a one-off premium based on the annualised contract value of your engagement(s). There is no annual renewal; you only purchase Survive35 TaxSafe for the engagements you wish to insure.
Once you have paid your Survive35 TaxSafe premium, those engagements remain on cover as long as you maintain your tax investigations insurance with Caunce O’Hara.
Whilst the liability for IR35 is moving up the contractual chain from April 6th 2021, many contractors will remain the decision-maker and remain responsible for the tax liability if they are engaged by small companies or directly engaged by end clients based abroad.
There are also current engagement – and previous – engagements for which contractors are potentially liable if HMRC seek to challenge their IR35 Status.
How to buy Survive35 Tax Losses Insurance
For more details and to arrange Survive35 Tax Losses Insurance for your business, visit the Markel Tax website.
Survive35 TaxSafe premiums start from only £329 (including IPT). Contact us today for a quote.
Price indication includes Insurance Premium Tax (IPT) at 12% and is based on a business consultant with an annual value of contracts of up to £75,000, no claims history and meeting all underwriting criteria following an IR35 Contract Review.