Risk Management - Insurances, S660a Insurance
When operating a limited company it is vital to consider whether your company and the individuals operating through the company need to take out any insurance. The need to take out insurance may be due to a legal obligation, a contractual requirement or indeed simply due a personal need.
S660a Insurance
The intention of the settlements legislation is to prevent you passing income streams, or assets to others to reduce your overall tax liabilities. For example where husband and wife hold shares jointly, and the husband does most of the work on behalf of the company, then any dividends paid to the wife are assessable on the husband at his highest rate of liability.
Such a challenge can result in a considerable amount of back taxes and interest becoming payable covering the last six years.
As with the IR35 insurance there are varying degrees 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 s660a legislation 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.
See also in this section...
- Employers & Public Liability [Read Fact Sheet >>]
- Professional Indemnity [Read Fact Sheet >>]
- Employment Law [Read Fact Sheet >>]
- Offshore Insurance [Read Fact Sheet >>]
- Directors and Officers Insurance [Read Fact Sheet >>]
- Permanent Health Insurance [Read Fact Sheet >>]
- Tax Inquiry [Read Fact Sheet >>]
- Drivers Loss of Licence [Read Fact Sheet >>]
- Medical Insurance [Read Fact Sheet >>]
- Travel Insurance [Read Fact Sheet >>]
- Death In Service [Read Fact Sheet >>]
- S660A Insurance [Read Fact Sheet >>]
- Public Liability Insurance [Read Fact Sheet >>]
- Key Man Insurance [Read Fact Sheet >>]
- Jury Service Insurance [Read Fact Sheet >>]
- IR35 Insurance [Read Fact Sheet >>]
- Equipment Insurance [Read Fact Sheet >>]
- Combined Liability Insurance [Read Fact Sheet >>]
- Income Protection Insurance [Read Fact Sheet >>]