Common Questions - MSCs & Qdos Products

Q – I recently left a composite company who supplied me with a Qdos tax insurance policy. I wish to continue with the IR35 insurance cover for my new company is this feasible?

A  – Cover would have automatically ceased but yes you may purchase cover direct from Qdos. In order to apply for TLC35, you will simply need to visit our online shop www.qdosconsulting.com/shop register or log in, add TLC35 to basket and proceed to checkout where you will be required to complete our online assessment. If you are eligible for cover, your policy can be incepted as soon as you have made payment. If there are any issues relating to your IR35 status that are affecting eligibility for cover, a member of the Freelance Team will contact you to discuss your application.

Q – Is Qdos affected by the new MSC rules? Can businesses still purchase Tax Liability Cover and the other tax insurance products?

A – As far as Qdos is concerned it is business as usual and yes you may purchase these products from us direct. IR35 is still very much alive and kicking and we are taking record enquires regarding our freelancer tax and PI and PL insurance products.

Q – All my accounting requirements were until recently, provided by a Managed Service Company (MSC). I recently read that accountants are not exempt from the new MSC tax rules and I am totally confused. I require an accountant to keep my books and records up to date is this a service provided by Qdos?

A – There has been an inordinate amount of speculation and misinformation banded around the freelancer market regarding this issue. In essence if a Limited company contractor uses the services of an accountant who is “merely …. providing legal or accountancy services in a professional capacity, the contractor will not be caught by the new rules”. However, if the accountant or accountancy practice is in the business of promoting MSCs you will be caught by the new regime. It is the view of Qdos that the majority of mainstream firms whether they belong to a professional body or not wont be affected by the changes and will continue to provide their specialist services.

Qdos do not provide accountancy or bookkeeping services; however, if you email your details to us on freelancer@qdosconsulting.com we will pass them on to a reputable accountancy practice in your area. The decision as to whether you utilise their services will be at your own risk.

Q – I am a contractor who has recently started my own one man limited company. I have been advised to purchase Professional Indemnity Insurance and Public Liability. What do these insurances cover? Can I purchase them direct from Qdos?

A – Qdos do provide both insurance packages tailored for the needs of IT contractors.
Qdos Freelancer Professional Indemnity (PI) Insurance – will protect your business against the cost of defending claims, where it is alleged that a client has suffered financial loss as a result of an error, omission or negligence. Whilst such disputes are rare we are aware of a PI claim against the cost of an IT contractor which was in excess of £600,000. You are not legally obliged to have this insurance but for total peace of mind it is recommended.
Qdos Freelancer Public Liability (PL) Insurance - will indemnify the business for the LEGAL liability for injury or death to third parties and damage to third party property as a result of negligent acts. We also provide Employers Liability Insurance which is a LEGAL requirement and covers injury or death to employees.

Q – How long will it take for a contract review to be carried out?

A  – Under normal circumstances we aim to respond within five working days for either a full Contract Review or Qdos Freelancer Club status assessment, providing we have all the information in which to conduct the review.  We are currently experiencing an influx and we are doing our utmost to respond within five days.

Q – How do I make payment to Qdos?

A – We recommend where possible that payment is made on line, via the Qdos website. Qdos use the services of Protx and both credit cards (excluding Amex) and debit cards may be used. We are also able to take payment details over the telephone if preferred. Cheques are also accepted if made payable to Qdos.

Q - What does TLC stand for?

A - Tax Liability Cover. TLC includes insurance against additional Tax, Interest and Penalties.

Q - If I purchase a full contract review, what does it consist of?

A - You will receive a full and frank written report outlining both the positive and negative aspects of your contract and working practices.

Q - What does the full section 660 Status Review consist of?

A - Once the S660A information request has been completed a written report regarding your Section 660 status will follow outlining both the positive and negative aspects of your situation. Obviously, if you have any questions regarding the request sheet please contact us and we will guide you through it.

Q - What happens if the Section660 Status and/or Contract Assessment fails your assessment?

A - You may purchase a full review report and allow the Qdos experts to steer you towards an IR35 compliant status or alternatively you may upgrade your club membership to the Qdos Freelancer Tax Protection product (£99), which means that Qdos will represent you in the event of a Revenue Enquiry or PAYE visit.

Q - What does the policy cover?

A - Professional fees of Qdos in defending you in the event of an HMRC PAYE review and/or enquiry or a dispute along with the additional Tax, Interest and Penalties due in the unfortunate event that the HMRC are successful in applying IR35. Please click here for full details.

Q - Does TLC cover all tax years?

A - Yes, the TLC insurance covers all backdated tax years. The policy is claims made like your car or home insurance. Therefore your period of insurance is one calendar year, as long as you make a claim within your period of insurance then you are covered for any tax year HMRC wish to investigate.

Q - Will I be insured against a S660 dispute under TLC35?

A - Yes. TLC35 covers the fees in the defence of any investigation by HMRC.

Q - What is the difference between a Status Assessment and Full Contract Review?
 
A - A contract review is a full written report detailing the positive and negative aspects of the contract, there is a detailed summary, conclusion and recommendations. The Status Assessment is an email confirmation confirming if we feel the contract is a ‘pass’ of ‘fail’ and a few short recommendations. However both options are professional opinions and sufficient to apply for TLC35.

Q - How do I make a claim?

A - On receipt of any correspondence from HMRC simply contact the Qdos Freelancer Team on 01455 852030 quoting your policy number.