The Professional Contractors Group is offering contractors insurance against challenges from the Inland Revenue that may arise from their IR35 tax liabilities.
The anti-IR35 campaigning group has teamed up with tax and VAT consultants Qdos to launch ‘Tax Liability Cover 35’, an insurance policy to cover all IR35 liabilities and penalties brought about by challenges from the Revenue.
PCG chairperson Jane Akshar said the UK tax system was ‘confusing and unpredictable’ making it necessary for small businesses to take out insurance to protect themselves from the ‘consequences of such uncertainty.
‘The recent judicial review helped to clarify the situation for some contractors, but there are still unknown factors and evidence of contradictory decisions which prevent contractors planning with any certainty for the future. Like any insurance policy, this product will help to reduce the zone of uncertainty to a more acceptable level,’ she said.
Premiums for the policy are based on company turnover and cost to PCG members range from Pounds 370 to Pounds 450 for a full year.
IR35 has proved highly controversial. The PCG attempted to get the regulation overturned but a High Court judge upheld the Inland Revenue’s case earlier this year.
The PCG claims IR35 contravenes European law and the Human Rights Act.
AccountancyAge.com’s IR35 Resource Centre is at www.accountancyage.com/news/1108595.
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