IR35 Tax Investigation & Liabilities Insurance

What does IR35 Tax Investigation & Liabilities Insurance cover?

Our IR35 Tax Investigation & Liabilities Insurance has been specially designed for contractors, freelancers and consultants to provide them with professional representation for both the defence and pursuit of HMRC enquiries. This includes IR35 status investigations and any back tax, interest and penalties applied by HMRC at the conclusions of their investigation. Cover is also provided for a range of commercial and personal legal disputes, including appeals, legal costs involved in a case, solicitors and barristers’ fees, court costs, experts’ fees, and attendance expenses.  

IR35 Tax Insurance for business owners

Every business owner needs to ensure that they are protected against the risk of having to defend or pursue a legal dispute with a third party. With ever-increasing legal fees for defending or pursuing a case through the UK courts, our Contractor Legal Protection affords you peace of mind that expensive solicitor fees are covered for a range of common disputes that a contractor faces.

Find out what IR35 cover your business needs

IR35 Tax Insurance for contractors

Whilst the original purpose of the legislation is a fair one, the aggressive methods adopted by HMRC when identifying so-called ‘disguised employees’ have been heavily criticised. Despite various amendments to IR35 over the years, successive governments have claimed that too many limited company owners are still illegitimately working outside the rules.

As a result, new off-payroll rules were implemented in April 2017 for contractors working for public sector organisations. It was announced in the 2018 Budget that the same rules would be extended to the private sector. 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 end client.

Where an end client deems the contractor to be inside IR35, they must deduct NICs and income tax from the contractor’s pay as if they were an employee. However, the contractor still won’t receive employee benefits or rights, despite paying an increased tax rate. Read more guides on how to prepare for IR35

Check your IR35 status as a contractor

It is uncommon for end clients and agencies to insist that a contractor holds legal protection insurance before they are allowed to commence a contract, but many contractors decide this is too big a risk for their business to take, and ensure they have cover in place regardless.

Try our free IR35 Liability Calculator

Commercial covers include:

    Bullet Point    Contract disputes
  Bullet Point   Tax investigations
  Bullet Point   IR35 status enquiries
  Bullet Point   IR35 status enquiry taxes and interest
  Bullet Point   IR35 status enquiry penalties
     Bullet Point    Property protection
     Bullet Point    Licence protection
     Bullet Point    Wrongful arrest
     Bullet Point    Debt recovery
     Bullet Point   Data protection

Personal covers include:

     Bullet Point    Consumer disputes
     Bullet Point    Home rights
     Bullet Point    Taxation
  Bullet Point   Criminal prosecution defence
  Bullet Point   Personal injury
  Bullet Point   Jury service
  Bullet Point   Identity theft

Costing just £190.00 (inclusive of Insurance Premium Tax), underwritten by one of the leading insurers in the UK, and with claims handled by one of the UK's leading experts, our IR35 Tax Investigation & Liabilities Insurance policy is as good as they come. You may also be interested in our Contractor Tax & Legal Protection insurance, which covers anything from contract disputes to debt recovery. 

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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