Disputes with HMRC (aka the taxman) can be protracted, worrying and potentially very expensive. IR35 insurance can save you time, anxiety and money.
Perhaps you think it will never happen to you. After all, you and/or your accountant are scrupulous in keeping the books and filing your returns on time.
Don’t be so sure.
HMRC conduct thousands of enquiries into the tax affairs of freelancers every year. The freelancers concerned are often selected at random and, in the early stages, will be quite unaware that they are being investigated.
So it could happen to you. In fact, it could be happening to you right now.
One of the big issues, since the introduction of the IR35 rules in 2000, is the question of status. As far as you’re concerned, it’s a straightforward fact that you’re self-employed. HMRC may not see it as so straightforward. Indeed, they may not see it as a fact at all.
if you’ve been working regular hours at a client’s premises using equipment and facilities provided, HMRC may well decide that for the purposes of that contract, you were effectively employed, not self-employed. And that could have significant implications for your tax liability.
If you don’t have IR35 insurance, you’ll find yourself caught between a rock and a hard place. You either contest and face paying some very large accountancy fees and legal bills. Or you don’t contest and face having to pay what could be a very large tax bill.
However, if you do have IR35 insurance, you’ll be free to challenge the ruling knowing that you’re covered for all the professional costs involved.
Some might say it’s a no brainer. To find out more about IR35 insurance, call 0161 833 2100 or email [email protected]uk .
I am a content writer and writing insurance articles for past 3 years..
Ammenda Michle
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