Contractors concerned about their IR35 status can take steps to protect themselves

Caunce O'Hara & Co Ltd Logo
Written by Caunce O'Hara
Last updated October 1, 2018

With the roll-out of IR35 reform in April 2021 to the private sector and the persistent and constant doom-mongering around the topic. Contractors concerned can get protection against IR35 tax investigations with Legal Expenses insurance and Contract Reviews.

There is no specific insurance policy for contractors to buy that insures them against IR35, but a Tax Enquiry and Legal Expenses insurance policy will at least cover you in the event that you are investigated by the HMRC regarding your IR35 and taxation status.

Tax Enquiry and Legal Expenses Insurance

Caunce O’Hara Tax Enquiry & Legal Expenses insurance provides you with £100,000 of cover (any one claim) for representation costs in the event of an HMRC investigation, meaning you aren’t fronting the cost yourself.

Before, during and after an IR35 investigation you may need to seek advice. The policy provides access to free helplines to guide you in IR35 issues, tax advice, legal advice, business law and counselling.

Caunce O'Hara legal expenses insurance


More than just IR35 cover

This policy is extensive in its coverage and provides a comprehensive level of insurance for most

instances where legal costs and expenses are incurred, including:

Employment disputes

  • ACAS early conciliation
  • Employment tribunals response
  • Pre-hearing review/Employment status disputes
  • Employment tribunal hearing
  • County or High Court proceedings

Employment compensation awards

  • Awards of compensation
  • Settlement of a dispute
  • Tribunal fees

Property and landlord and tenant disputes

  • Property disputes
  • Disputes with your landlord
  • Disputes with your tenant
  • Eviction

Criminal defence

  • Interview under caution
  • Prosecution defence
  • Motor offences

Tax protection

  • Aspect enquiry
  • Full enquiry
  • National Insurance and PAYE disputes
  • Current tax year enquiry
  • VAT disputes

Regulatory compliance

  • Enforcement notice
  • Statutory licence appeals
  • Data protection defence
  • Data protection compensation

Court attendance costs

  • Jury service
  • Witness attendance allowance

Employment extra protection

  • Pension trustee defence
  • Wrongful arrest
  • Personal injury
  • Discrimination defence

Identity theft

  • Unauthorised use of your personal data
  • Contracts entered into by a third party, in your name or on your behalf, without your permission

Contract disputes

    • Contracts for goods and services
    • Contracts for construction and repairs

Some of these issues can leave you having to pay thousands of pounds out of your own pocket if you do not hold this type of cover.

IR35 Contract Reviews are an added benefit contractors can take advantage of

For only £60.00 you can add a IR35 Contract Review to your Tax Enquiry & Legal Expenses policy. The review is aimed at defining your IR35 status in the eyes of HMRC for tax purposes and informing you if your contract passes the test for IR35.

Article first written and published in October 2018. Updated January 2020. 2nd update March 2020. 3rd update July 2020.


Can I insure against IR35? 

Contractors, IR35 and being prepared 

Caunce O'Hara & Co Ltd Logo
Written by Caunce O'Hara
Last updated October 1, 2018

IR35 Products & services

Caunce O’Hara’s partnership with Markel enables us to offer a broad range of IR35-based products to protect contractors, fee-payers and end clients across the UK.

IR35 Hub Related IR35 content