IR35 detailed comment


Insurance

The issue

The issues here would appear to be whether there is anything either in the contract, or in the actual relationship between Individual and Client, in relation to this factor which

·         helps towards a decision on whether that relationship, had it been direct and without a company in between, would have been an employment contract - a contract of service - or a contract for services, or

·         would be inherently inconsistent with a contract of employment.

Legal issues, and the Revenue Guidelines

The Revenue's guidelines are silent on this point.

All employers are required by law to carry Employer's Liability insurance, covering risks of claim against them by their employees.  [1]

Comment

what would the position be likely to be in relation to this factor for a hypothetical employee?  Logic and experience suggests that a hypothetical employee would not maintain any such insurances, with the possible exception of Professional Indemnity insurance in the case of certain professionals.

what would the position be likely to be in relation to this factor for a hypothetical obviously self-employed person or consultancy (eg Andersens, or by PWC, or EDI?)  Logic and experience suggests that a hypothetical obviously self-employed person or consultancy would probably maintain all necessary insurances, including Professional Indemnity, Public Liability, and Employer's Liability.  Additionally, contractual requirements to maintain such insurances may often be imposed.

do the facts here actually provide a helpful pointer towards either view?


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[1] Employers Liability (Compulsory Insurance Act 1969