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Contractor Insurance Proves Effective Against The Taxman
by
Chris Carvill
Whenever you log onto the internet these days or pick up a half read newspaper on the tube, you will no doubt be met by some ominous article explaining a million and one reasons why your business will not work and your company will suffer. Since the announcement of the \’recession\’ a few years back, money has seemed like a nonexistent pipedream and success; a dirty thought that should be forgotten about as quickly as possible.
For business owners, whether you are a limited company contractor or the CEO of a multi-million pound corporation, with the pressure of an unstable economy and a tax office that seems poised to burst, the importance of business protection has never seemed more relevant.
Whether getting suited and booted with small business and contractor insurance, or covering hundreds within an overhanging insurance umbrella, company owners are doing as much as they can to secure their finances this year. Insurance plays a large part in business. Cover policies have a far wider range than simply offering you a pay out if you clip your car on the way out of an unimaginable parking space. From obvious financial protection regarding liabilities and indemnity, to covering payments regarding health and safety, business insurance can enhance a company tenfold.
As most will already be aware, recently for business, the revenue and treasury have been knocking on the door of a number of occupational and company owners chasing unpaid taxes and potential schemes. Most noticeably for small businesses (limited companies and personal service companies) professional cover such as contractor insurance provides quality and cheap protection against the many trials and tribulations that a run in with the tax man can incur.
Her Majesty\’s Revenue & Customs are indeed a thorn in the side of modern businesses, their tax laws and implementations providing boundaries, guidelines and in some cases barriers against some of the flexibility of professional companies. Many cover policies are designed in a way as to combat some of the contingencies that HMRC disputes can cause.
Contractor insurance especially often concentrates on covering limited companies against any tax office disagreement, namely providing protection against IR35.
IR35 is a tax legislation aimed at pinpointing contractors and limited company professionals who may be guilty of tax avoidance. The legislation itself targets those who may be working from their own companies when they are still technically employed, thus avoiding the PAYE tax code, and therefore paying less tax than they should be.
Thankfully however, insurance exists that can aid contractors in their battle against the tax man with cover policies that can cover policy holders against financial outcomes of tax investigations.
Whether it is large or small business insurance, with the current economic climate still in the aftermath of the dreaded \’recession\’, companies across the nation are taking no chances, arming themselves with the latest shiny insurances that are on offer and rightly so. Insurance should obviously not be purchased for the sake of it, but it is advised that necessary policies are put into place.
Chris Carvill is an advisor on
QDOS Insurance
products for contractors which include
Accident and Sickness Insurance
. For further information about Qdos services and a comprehensive list of Qdos products, visit
shop.qdosconsulting.com
.
Article Source:
ArticleRich.com