IR35 insurance works on pretty much the same basis as any other insurance package. Acting as a reliable safeguard, the insurance policy looks after the possible problems that come with an IR35 enquiry. It is a policy that protects not only representation cost, but the subsequent tax, NIC, interest and also potential penalties that may arise from a HM Revenue and Customs inquisition.
It is a highly specialised contractor insurance policy, which can only be offered by companies with a significant track record in IR35. Qdos is an insurance and consultancy company who have put together an affordable and quality package, under the name, Tax Liability Cover (TLC35) for the past few years. It sells the product under the description ‘a revolutionary IR35 insurance, providing total peace of mind for contractors.’ This not only really highlights the prominence of the insurance policy, but the attractiveness that it has to contractors across different business sectors.
With the recent update by HMRC of the guidelines of IR35, many people are condemning the rules that have been laid out. IR35 advice is essential in this case, and as many contractors are finding out, Tax Liability Cover (TLC35) is the only way to ensure full safety and security in the current market as well as a window to receive the best and most helpful advice. This IR35 insurance is becoming increasingly popular, and not only are contractors purchasing the product more often, along with their own contractor insurance, but they are sustaining its use year after year.