OFF-PAYROLL PROTECT
Should you or shouldn't you protect your business?

In a recent survey by Kingsbridge Contractor Insurance, 87% of recruiters reported that they had taken steps to insure their tax, interest, and penalties risk should HMRC investigate their business under the Off-Payroll (IR35) Rules.
 
You only have to look at the recent high profile cases in the press, such as Gary Lineker, Eamonn Holmes and Stuart Barnes, to see the risk that these investigations could potentially have on any business.

Kingsbridge's Head of Tax, Andy Vessey ATT, who has successfully defended over 500 contractors during IR35 enquiries, said, "The Off-payroll reform was introduced to the private sector in April 2021, shifting the responsibility of determining IR35 status from limited company contractors to medium and large size end clients.

The tax liability now also sits with the fee-payer in the supply chain which, in most cases, will be the recruiter, and they will generally carry the most risk despite the end client being responsible for the status determination of the contractor."

So what can you do, if you don't have oodles of money to risk being at the losing end of an HMRC investigation? Many recruiters are turning to Off-Payroll Protect, a specialised IR35 Insurance that saves recruiters time, grief and reputational damage by not only offering enhanced cover for each contractor they have, it also covers all parties in the supply chain. Helping to mitigate the risks associated with IR35, whether it's professional fees to defend an IR35 status enquiry, cover for Tax & National Insurance liability, interest and penalties in the event a contractor is seemed inside IR35. 

Andy concluded, "The great thing about this product is it not only offers peace of mind with a 6-year extended reporting period following the initial policy period, it has no occupation restrictions, allowing recruiters to cover all contractors. As well as giving them full flexibility over fluctuating contractor engagements by offering monthly policies."

To learn more about Off-Payroll Protect visit: https://www.kingsbridge.co.uk/products/off-payroll-protect-for-recruitment-agencies/