Specialist insurances and IR35 advice
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For those contractors working outside of IR35, there are many things you can do to reaffirm your status as such, including:
|Remember at all times you work for your company providing services to a business|
|Demonstrate control over your working practices|
|Ensure you have and can exercise your right of substitution|
|Have every contract checked from an IR35 perspective prior to commencing the role|
|Certify you pay for all of your own training courses|
|Always use your own equipment|
|Never use the end clients’ logo or details on your email signature|
|Do not use the subsidised staff canteen or similar|
|Establish a company website|
|Use company stationery such as business cards and letter headed paper|
|Rent an office or work from home|
Keep all correspondence, including contracts and emails relating to each role for a minimum of seven years
If you receive an IR35 status letter from HMRC, contact Larsen Howie straight away to claim on your insurance or talk to us about how else we can help you, including representation Ensure you have business insurances such Professional Indemnity, Public Liability, Employers Liability, Conractor Legal Protection and IR35 Tax Investigation & Liabilities Cover in place If you find your contract is inside of IR35 then pay the correct taxes and ensure you are compliant for the period of that contract If you are caught by IR35 then any penalties incurred can likely be minimised if you can prove to HMRC that you have taken reasonable efforts to confirm your status by following the above.
Taking out an IR35 Tax Investigation & Liabilities Cover insurance (Coming Soon) can save a contractor up to 6 years’ worth of back tax and NIC liabilities plus interest, and a penalty which can be anything up to 100% of the liabilities owed, whilst Professional Indemnity Insurance covers you for the legal costs and damages incurred when a claim is made by a third party alleging professional negligence such as errors or omissions in the service you provide.
Having an IR35 Contract Review - Assessment or an IR35 Contract Assessment - Full as well as an IR35 Working Rractices Review undertaken on each contract will assist you in proving to HMRC, if questioned, your IR35 status. Regular reviews are important as your working practices might change, even during a contract.
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