Covers you against claims from employees. It’s likely that employees will only be you and maybe your spouse so claims are unlikely, but many agencies or end clients will still insist on it.
FEE PROTECTION COVER
With new IR35 rules, HMRC can determine whether or not a contract represents ‘disguised employment’ based on a number of criteria, including employment status rules as well as a growing number of court rulings and precedents. If you are retrospectively found ‘inside’ IR35, tax has to be paid back, as well as fines issued.
Fee Protection Cover protects you and your Company from additional professional and legal costs incurred with an HMRC enquiry (including IR35 enquiries).