Regular readers of this blog will know that we’ve covered IR35 fairly extensively in the recent past. Whether we’re talking about the ins and outs of what it actually is or highlighting examples of contractors who’ve fallen foul of the legislation, we like to think of it as a subject we know well.
But there’s only so much talking we can do. Sometimes action has to be taken. That’s why we’ve recently introduced our Legal Expenses Plus policy, our cover designed to help you should you find yourself in the midst of an IR35 investigation.
An IR35 investigation is not something any contractor wants on their plate. Regardless of whether you’re found to be inside IR35 or not, it’s time consuming, stressful, and a likely drain on finances given the amount of effort you’ll have to put into defending yourself.
If you’re found to be inside IR35 those costs (and stresses) will increase exponentially. Depending on how long you’re found to have been inside IR35 for, and how much you’ve been earning, you’re looking at a bill stretching into 5 or even 6 figures.
HMRC will seek redress for any taxes and NICs missed, alongside potential fines, penalties, and interest depending on the circumstances of the case. The eventual sum due is likely to be life-changing, no matter your financial standing.
That’s where we come in. Kingsbridge offer two different types of cover to help with any IR35 investigation. Our Legal Expenses policy (£59.50 plus IPT) provides cover for tax enquiries including VAT and IR35 investigations, alongside cover for contract disputes and any lost earnings if you find yourself called up for jury service.
Our Legal Expenses Plus policy (£199.50 plus IPT) contains all of the above, alongside cover for any fines, penalties, taxes, and interest that might result from an IR35 investigation up to £25,000.
Given the potential costs that come with an investigation, if you’re concerned about being caught inside IR35 our cover is essential. Want to know more? Get in touch with one of our IR35 experts on 01242 808740.