IR35 and Legal
Expenses Insurance
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The complexities of the tax system can prove a
minefield for any company and regardless of how
carefully your accountants complete your tax returns,
you can still end up involved in a tax dispute. HM
Revenue & Customs has targets for the number of Full and
Aspect Enquiries to be raised, and the amount of unpaid
tax to be recovered, these targets are often exceeded.
We have identified a few facts which we believe
brings this statement into context: For the tax year
2004/5 HMRC conducted 38,826 Full Enquiries, 77,786
Aspect Enquiries, 29,409 Employer (PAYE) reviews. A
total of 146,021 enquiries/reviews in 12mths, more often
that not randomly selecting businesses.
In addition, changes to National Insurance
contributions and stricter enforcement are also likely
to result in a rise in related problems. Although the
VAT system in this country is well established, many
problems still arise following assessment by customs &
excise.
Our IR35 & Legal Expenses policy take's away the
stress and worry of taxation &/or legal action being
taken against your company.
For a premium of just £75 pa you can obtain
£50,000 of legal representation that provides the
following cover:-
- We will pay the accountancy fees in representing
you in a full and/or aspect enquiry by HM Revenue and
Customs.
- Within the cover is a dedicated telephone service
set up specifically for freelance contractors with
regard to advice in respect of IR35 matters and all
other similar issues.
- Included within the cover is a 24 hour legal advice
link on UK and European law.
- Jury service. The policy will pay your wages for the
time that you need to take off work to attend any
arbitration, court and tribunal hearings.
- Legal costs for defence and appeals in respect of
criminal proceedings for both you and your employees,
and limited cover for civil proceedings for employees.
- Provides legal costs and expenses for
representation and defence proceedings brought under the
Data Protection Act.
- Provides legal costs and expenses in defending
actions brought by employees and ex-employees under
employment legislation.
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