Tax Liability Cover (TLC35)
TLC35 is our revolutionary IR35 insurance, providing total peace of mind for contractors.
FREE UNLIMITED IR35 Contract Assessments when you purchase this product (valid for the length of your policy) - if you require one of our other review products, this will incur a fee
What is it?
TLC35 is a comprehensive insurance policy designed with the threat of IR35 in mind. This policy will protect you in the event of HMRC opening an enquiry into your accounts, whether it is a PAYE compliance review, VAT dispute, IR35 enquiry or any other HMRC enquiry, Qdos will be there from day one to defend you.
In addition to this invaluable support, the policy will also cover any tax/NIC liabilities, interest and penalties should you be found ‘caught’ by the IR35 legislation up to the indemnity on your policy schedule.
IR35 is an ever present exposure for contractors and with now four specialist teams dedicated to enquiries, we can expect to see a significant increase. Professional representation is highly recommended in the event of an IR35 enquiry, without insurance, fees can cost over £130 per hour. For more information on IR35, click here.
Please note that this policy encompasses everything that is included in the Tax Enquiry Insurance and so it is not necessary to purchase both. Click here to compare these products.
What Does It Cover?
TLC35 covers the representation costs of up to £50,000 in the event of an HMRC enquiry. Additionally, if you are subject to an IR35 enquiry and are subsequently found to be 'caught' by the legislation, the policy will cover the tax, NIC, interest and penalties for which you are liable.
1. Representation costs up to £50,000 in the event of:
- A PAYE compliance review
- An IR35 dispute
- A PAYE/NIC dispute
- A VAT dispute
- Any HMRC aspect enquiry
- Any HMRC full enquiry
- A Section 660A dispute (For an additional premium of £270 per annum you can also include cover for tax, interest and penalties as a result of a Section 660A enquiry. This option can be selected during application)
2. IR35 tax/NIC liabilities, interest and penalties
3. Previous tax years covered
This insurance is offered on a 'claims made' basis. This means that the policy will cover claims which arise and are notified to our claims department whilst cover is in place, regardless of the period of time into which HMRC are enquiring.
Please note that there is a £250 excess for any one claim on the liabilities element of the policy.
We offer indemnity limits of £25,000, £50,000, £75,000 or £100,000 but it can sometimes be difficult to work out what you actually need. In deciding on your level of cover you should consider:
- How long you have been contracting
- Whether you’ve worked at the same client for a prolonged period of time or not
- What your average daily rate has been
You can use our IR35 Calculator to get a rough idea of what your tax liability could be. Note that the calculator does not include penalties or interest. Penalties can range from 0% to 100% of the tax liability, but you can use 15% as an average figure. HMRC's rate of interest is currently 2.5%. This would effectively be an APR for each year's worth of liability.
If you have any queries regarding this policy please do not hesitate to contact us.
Policy Excess: £250
For any one claim on the liabilities element of the policy only
Do I Need It?
Any UK limited company contractor/freelancer paying themselves dividends through their company is potentially exposed to the IR35 legislation. Tax Liability Cover is not a legal requirement, but is occasionally made mandatory in agency or end client contracts. The Tax Liability Cover has been designed to protect you and your hard-earned income, giving you peace of mind and leaving you free to do what you do best.
- Unlimited IR35 Contract Assessments included FREE with this insurance (valid during the term of your policy) - if you require one of our other review products, this will incur a fee
- You have the ability to call us for any tax or IR35 advice.
- IR35 claims are handled by our own team of ex-Revenue inspectors with years of experience in the field, who have successfully defended over 1,500 cases, saving contractors over £35m in tax
- We have an unrivalled record of defending contractors against IR35 status challenges. Qdos tax specialists will defend your enquiry or dispute, giving you the best possible chance of winning
- We do not need to review your contract in order to offer cover, you simply need to be able to agree to a series of statements regarding your working practices - please contact us if you require clarification
Statement of Demands & Needs
When purchasing a product from our shop you will first be asked to register for an account. Once you have completed our online application form and made payment, you will be able to log into your account to view your policy documents or product information.
It is important that before deciding to purchase a Qdos product you consider whether the insurance is appropriate for you.
You should read thoroughly all the product information we have made available to you, in particular the Specimen Policy Wording together with the Summary of Cover (Key Facts) before deciding to purchase your chosen product. These documents contain the full Policy Terms and Conditions.
Please note that you are basing your purchase solely on your own interpretation of the information we have provided.