Risk Management - Insurances, IR35 Insurance

When operating a limited company it is vital to consider whether your company and the individuals operating through the company need to place any insurances. The need to place insurance may be due to a legal obligation, a contractual requirement or indeed simply due a personal need.

IR35 Insurance

Insurance can be purchased which protects in the event of an IR35 investigation by the Inland Revenue. There are various levels of cover offered as detailed below:-

Professional Representation Only - This insurance would ensure that you have professional representation in the event of an investigation.
Professional and Legal Representation - This covers any professional and legal representation costs associated with the investigation.
Professional and Legal Representation with Indemnity - This covers any professional and legal representation costs associated with the investigation. It also gives a level of indemnity against any additional demands for tax, interest or penalties from the Inland Revenue.

Individuals may wish to purchase the lower level of insurances in order to have the peace of mind that should the Inland Revenue ever choose to investigate their personal set up under the IR35 regulations that they have provided for an expert to defend their status to the Revenue inspector.

Individuals may then wish to take it one step further in order to have the peace of mind that should the investigation go against them, that any costs associated with the investigation (whether they be legal or demands from the Revenue) will be taken care of through the insurance policy.

Risk Management - Insurances, IR35 Insurance

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