Tax Liability Cover

Comprehensive IR35 insurance and unlimited IR35 Contract Assessments?! Contracting never felt so good.

What is Tax Liability Cover?

Tax Liability Cover (TLC) is the market-leading IR35 insurance. We’ll cover the representation costs to defend you in a range of HMRC enquiries, and cover the liabilities, penalties, and interest owed following an IR35 enquiry.

Get cover from as little as

£ 16 .58

per month

*Based on £25,000 liability cover (+£50,000 enquiry defence cover)

Tax Liability Cover for contractors

Tax Liability Cover is the first and most comprehensive IR35 insurance policy for UK limited company contractors impacted by the IR35 legislation.

Contractors providing services to small businesses, as well as those who were in contract prior to reform, are still facing the threat of IR35 enquiries. Professional representation is highly recommended to ensure success, and without insurance, representation fees can cost over £250 per hour. Whilst going alone could find you facing a tax bill in the thousands.

TLC will protect you in the event of HMRC opening an enquiry into your accounts, whether it’s a PAYE compliance review, VAT dispute, IR35 enquiry or a broad range of other HMRC enquiries, Qdos experts will be there from day one to defend you.

If, somehow, we don’t win your IR35 case, we will also cover the resulting tax and national insurance (NI) liabilities, interest, and penalties (up to the cover limit you choose). This cover can be extended to cover S660a enquiries too.

What does Tax Liability Insurance cover?

Defence Costs
£50,000 to £250,000 in defence costs for a range of HMRC enquiries
Liabilities, Interest, and Penalties
Up to £250,000 cover for resulting liabilities if we don’t win your IR35 case
Previous Tax Years
You’re covered for all contracts where the application statements can be agreed
Professional Representation
Qdos IR35 experts will help you from the moment HMRC contact you
Section 660A Liabilities (optional)
Extend your liability cover for S660A enquiries, if you share income with family
Thoughtful contractor

More than just IR35 insurance

With Qdos’ Tax Liability Cover, you’re covered in the event of


  • IR35 enquiries
  • PAYE compliance reviews
  • PAYE/NIC disputes
  • VAT disputes
  • MSC enquiries
  • Enquiries into your self assessment tax return
  • Section 660A disputes
    for defence costs and representation.
    Cover for liabilities, penalties, and interest applies to IR35 enquiries as standard, and can be extended to S660A enquiries as an optional extra.
    Contractor browsing on mobile

    Calculate your IR35 liabilities

    Confused by which cover limit you need? Don’t worry. A member of our team can take you through an in-depth calculation based on your circumstances to help you assess your risk. Simply book your free consultation below.

    Frequently Asked Questions

    Yes. Tax Liability Cover provides cover for retrospective risk and there's no change to this following IR35 reform in April 2021. Tax Liability Cover will react providing the statements you agree to when applying are true for the contract under enquiry.

    Tax Liability Cover also covers liabilities in respect of travel and subsistence expenses following an enquiry.

    If you’ve received a Status Determination Statement (SDS) with an 'inside IR35' result from your client, please get in touch with your account manager. We would need to review your circumstances on a case-by-case basis to confirm cover in this instance.

    There are a number of factors which could impact our ability to defend a contractor in an enquiry, but we will always do our best to ensure our customers benefit from their policies.

    Tax Liability Cover comes with £50,000 cover for the costs to defend your case. We offer indemnity limits of £25,000, £50,000, £75,000, £100,000, £150,000, £200,000 or £250,000 for your IR35 liabilities. To find out what level of cover you need, you should consider:

    • How long you’ve been contracting
    • Whether you’ve worked at the same client for a prolonged period of time or not
    • What your average daily rate has been

    If you need assistance in determining your potential liabilities, book an IR35 calculation with a member of our team, or speak to your account manager.

    A £250 excess applies for any claim on the liabilities element of the policy only.

    Yes, as long as you can agree to the application statements for the contracts in question.

    Tax Liability Cover is offered on a 'claims made' basis. This means that the policy needs to be in place at the time we’re notified of a claim, regardless of the period of time into which HMRC are enquiring.

    Please note: the below policy documentation shall apply to all policies starting on or after 18th July.

    Why Qdos?
    We don’t just talk about IR35, we live it. We’ve been defending contractors against IR35 since the legislation was introduced in 2000. Not only that - we’re pioneers! Tax Liability Cover was the first IR35 insurance in the market! So you’re in safe hands.
    All of our policies include the following as standard:
    A dedicated Account Manager
    We'll never pass you around a call centre
    Online account for 24/7 access
    Manage your policies at a time that suits you
    Free IR35 Contract Assessment
    Because IR35 compliance starts with the written contract

    Have a question?

    Ask away! One of our team will get back to you

    Prefer to talk to us in person?

    Call our team on 0116 269 0999 or we can call you back at a time that suits you!