Making sure you are fully protected
A robust, compliance-led approach is essential to meeting regulatory compliance. Non-payment of tax cannot simply be circumvented with a weak assessment and an insurance policy.
But IR35 can sometimes be subjective, so some clients might want extra protection in the unlikely event of a successful HMRC challenge.
IR35 Shield has partnered with specialist tax underwriters to give our customers comfort where further protection is desired.
Our underwriting partnerships
IR35 Shield only works with specialist underwriting firms who have a detailed knowledge of IR35 status. For example, one of our partners has extensive experience defending cases at tribunal and has underwritten IR35 based insurance policies for 20 years.
Likewise, our underwriting partners have conducted extensive due diligence on IR35 Shield; their partnerships with us are testament to the accuracy and meticulousness of IR35 Shield’s status assessments.
Our partnerships demonstrate a mutual commitment to offering comprehensive protection.
Key features of underwriters and policies available via our underwriting partners
- Cover tailored to your exposure and risk
- All risk can be covered by one policy
- Includes years to cater for lack of reasonable care challenges (6 years)
- Representation at both First-Tier and Upper Tier Tax Tribunals
- Upfront checks to ensure policies will always respond
- No weak “prospects of success” clauses to deny tax losses cover
What are your off-payroll tax risks?
A tax risk can arise if a contractor is hired on an outside IR35 basis and HMRC successfully challenges at a later date.
However, if a robust, compliance-led process is followed, with the help of specialist advisors, the chances of any parties falling victim to an HMRC challenge are relatively slim.
Additionally, with the tightening up of contractual paperwork and working practices that have accompanied the off-payroll rollout, the probability of HMRC succeeding at a Tax Tribunal in the face of all the contrary evidence by the parties are reduced further.
How much risk does your firm have?
A single policy protecting your firm needs to be tailored to your total exposure, which depends on your cohort of contractors, all earning different amounts and having different levels of risk.
Further consideration should be given to the likelihood of HMRC investigating any of your contract engagements and, against all the evidence and having taken reasonable care, overturning the status decision at tribunal.