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Third Party Contracts and Insurance

Q: I have recently contracted to a Government quango via a third party that taxes me, the department insists that all contractors are inside IR35, but as a result, I have no cover for professional and public indemnity should I give wrong advice. Is there an employment lawyer that I can speak with to clarify where I stand – could I contract directly with the organisation as a third party as I can also demonstrate other customers?

A: By the description offered, if you are contracted via an umbrella company then the umbrella company should hold the relevant insurance policies on your behalf. It may be worth checking this with them.

With regard to contracting directly, it is likely that your client has opted to use a third party to deduct the taxes as they do not wish to take on the administration of inside IR35 contractors, and therefore it is unlikely (albeit dependent on your client) that they would engage you directly. We cannot comment on whether the demonstration of other customers would place you outside IR35 as the full picture is required.

We can recommend the following specialists to you should you wish further advice:

Qdos Contractor – (IR35 Specialists)
Vantage Legal Protect – (Contractor Legal Services)

By Contractor Doctor


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