If you provide services for customers over a longer period of time the Intermediaries Legislation (IR35) will become an issue.
IR35 was introduced by HMRC in April 2000 and was originally designed to catch people who were an employee of a company on a Friday, only to return as a contractor on Monday simply to take advantage of the tax benefits.
Since then it has developed and HMRC regularly attack contractors of all types, which causes huge levels of uncertainty and worry. If a contractor is investigated enquiries can often take over two years to conclude and if unsuccessful can mean a huge tax bill. Last year a contractor lost his case at the High Court and was faced with a bill of £99,000.
Soon after IR35 was introduced a revolutionary IR35 insurance product was designed - Tax Liability Cover (TLC35). This covers not only representation costs in respect of any enquiry, but also all liabilities should the contractor be caught by IR35. It affords the contractor complete peace of mind in an increasingly uncertain environment.
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