IR35 Tax Investigation & Liabilities Insurance

Our fully comprehensive policy offers the
following cover as standard for all trades:


Policy features:

  • Contract/consumer disputes

  • Tax investigations

  • IR35 status enquiries (taxes, interest, penalties)

  • Property and licence protection

  • Wrongful arrest

  • Debt recovery

  • Data protection

  • Criminal prosecution defence

  • Identity theft

FREE IR35 Review

Includes a FREE IR35 review

    We'll give you an overall inside/outside IR35 opinion regarding your contract as a whole, including a comprehensive list of essential changes (if any need to be made). We'll also recommend a list of insurances tailored to you and offer guidance on any applicable legislation.

  Expert Advice and Consultancy

Expert Advice and Consultancy 

    Our Head of Tax, Andy Vessey, is widely recognised as one of the UK’s foremost IR35 experts, having personally and successfully defended more than 500 HMRC IR35 investigations. His expertise is accessible for all clients of Larsen Howie.

  Tailored for Contractors, Consultants and Freelancers

Tailored for Contractors, Consultants and Freelancers

    The beauty of contracting is that each end client, contract and project is different from day to day, and a cookie-cutter review doesn't do your contract justice. We approach each contract review as a unique document, so you get tailored recommendations and as accurate an opinion as possible.

It stems from a piece of tax legislation which is commonly known as the 'Intermediaries Legislation'. The aim of IR35 by HMRC is to ensure that ‘disguised employees’ pay the same tax as if they were an employee. Genuine companies in business in their own right are deemed to be ‘outside’ of IR35 and are not penalised, whereas disguised employees are said to be ‘inside’ of IR35 and must pay the relevant taxes and National Insurance Contribution (NIC) payments accordingly.

The new ‘off-payroll’ rules were implemented in April 2017 for contractors working for public sector organisations. Instead of contractors themselves being responsible for determining their IR35 status, this obligation has been handed to the engager of each contractor, i.e. the client. Where a contractor is deemed to be ‘inside’ IR35, the fee-payer must deduct employees’ NICs and income tax from the contractor’s pay, as well as paying employers’ NICs.

There are steps you can take, no matter where you sit on the supply chain, to make sure you’re ready for the changes; contract and working practices reviews are the first port of call while educating yourself about what the off-payroll rules mean for you is crucial to staying on the right side of the legislation. Larsen Howie offers a range of contract and working practices reviews – you can find out which option would be best for you here.

IR35 insurance helps contractors find experienced legal representation to defend their tax status and represent their interests if they are selected for review - effectively, it's insurance in case you're investigated. Our policy covers the legal costs of defending yourself in an investigation and the financial consequences of being found to be 'inside' IR35.

If the HMRC decides to investigate your tax status and you don't have insurance, you could end up paying a specialist far more to represent your interests. With investigations potentially taking years to conclude, this could leave you with a huge bill, even if you win. Even if you never need it, the nominal premium of IR35 tax investigation & liabilities insurance offers peace of mind like few other covers.

While this figure will only ever be cemented until a given tax or IR35 investigation is closed, you can use our tax liabilities calculator to get a good idea of how much you would have to pay. Remember that this figure doesn't include any court or defence costs, and it's always best to over-estimate to make sure you're fully covered.

We've written about this before - read here for a step-by-step of what to expect before, during, and after an IR35 enquiry.

Discover more on IR35 insurance and services:

 Visit our Knowledge Hub for industry news articles, whitepapers, useful downloads, expert guides and easy-to-use templates for the self-employed – all the contractor content you need in one place. 

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