The IR35 legislation places responsibility on you for deciding how to treat your contract income for tax purposes. Getting that decision wrong can prove to be a costly mistake. Whilst an IR35 Status Review is a valuable tool in helping to make that critical decision, unfortunately no one can be certain that the Inland Revenue will share that view. Furthermore, no one yet knows how the Revenue will “enforce” the IR35 regime, although some contractors will be selected purely on a random basis and most contractors are a prime target.

Peace of mind is now available with IR35 Tax-Safe (available from a separate organisation). This new insurance product will reimburse the tax, penalty and interest losses that may arise if IR35 is subsequently imposed on a Contract that has been previously reviewed and “passed” by Lawspeed as being outside the scope of the IR35 legislation. With no policy excess or annual renewals (excl. PEI) this policy is highly cost effective.

IR35 TAX-SAFE COVER

• The policy covers:
• ALL ADDITIONAL IR35 TAX including:
  
  • Income Tax (including PAYE and Higher Rate Tax)
  • Corporation Tax due from the Company
  • Employers NIC & Employees NIC
  • Tax on Dividends (whether notional or not)
• INTEREST due on the taxes included above
• PENALTIES due on the taxes included above

PROCEDURE

The service involves a two-step process.

1. We conduct a comprehensive Status Review.
2. If the arrangements 'pass', you can apply to the separate organisation for IR35 Tax-Safe Insurance

STATUS REVIEW PRICES

• IR35 Tax-Safe Status Review - £260 + vat
• Additional Contracts - POA

TAX-SAFE INSURANCE PRICES

• From £396.

KEY FEATURES

• There is no excess in the event of a claim
• The simple application process is and quick and easy
• Premiums are calculated monthly (after initial 12 months)
• Also covers named executive directors of the Company
• PEI additional option available
• There is no requirement to buy ‘continuation premiums’ – merely that the you have in place valid PEI

Click here to return to our summary of IR35 Services for contractors, interim managers and freelancers.

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