Natalie JenkinsonDigital Marketing Manager

11/08/2020

IR35 and the March 2020 Budget

With the announcement of the March 2020 Budget and new legislation the IR35 rules will now impact medium- and large-sized private sector businesses; small enterprises, as defined by the Companies Act 2006, will be exempt for now, with what classifies as a small business to be included in later legislation.

Who Will Be Affected?

Those contracting in the private sector working for medium and large sized private businesses who have previously not been caught up in these rules will now be affected and will have to consider their position carefully.

Many of our contractor clients who are company directors operating through a personal services company or their own limited company have taken out life insurance or income protection designed for contractors to be owned and paid for by the business.

Individuals who now fall foul of this new legislation and decide to wind up their limited company and return to employment have a coupe of options to consider with their existing policies given they’re company-owned.

Transferring Company Life Insurance & Income Protection to Personal Policies

The main two company owned protection policies to consider are:

If you have either of these two policies and you’ve been caught up in IR35 and have wound up your limited company, then you need to carefully consider what to do next.

Option 1 : Complete Forms to Convert to a Personal Plan

The best course of action will usually be to convert the policy into a personal plan as you can maintain the policy and pay the premiums from your personal bank account.

We can facilitate this switch fairly easily with a simple form and it means you won’t have to face further medical underwriting, which could go against you if you’ve suffered from any health conditions since taking out the company-owned policy.

Option 2 : Review Existing Cover

If your circumstances are changing considerably then it might make more sense to have a chat to discuss your situation and check what adjustments need to be made to your personal protection.

For help and advice surrounding IR35 for contractors and others working through their own limited company in light of these changes to IR35, don’t hesitate to pop us a call on 02084327333 or email help@drewberry.co.uk.

Why Speak to Us…

We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to let us help.

There is no fee for our service
We are independent and impartial
Drewberry isn’t tied to any insurance company, so we can provide completely impartial advice to make sure you get the most appropriate policy based solely on your needs.
We’ve got bargaining power on our side
This allows us to negotiate better premiums for you than you going direct yourself.
You’ll speak to a dedicated expert from start to finish
You will speak to a named expert with a direct telephone and email. No more automated machines and no more being sent from pillar to post – you’ll have someone to speak to who knows you.
Benefit from our 5-star service
We pride ourselves on providing a 5-star service, as can be seen from our 3886 and growing independent client reviews rating us at 4.92 / 5.
Gain the protection of regulated advice
You are protected. Where we provide a regulated advice service we are responsible for the policy we set-up for you. Doing it yourself or going direct to an insurer won’t provide this protection, so you won’t benefit from these securities.
Claims support when you need it the most
You have support should you need to make a claim. The most important thing when it comes to insurance is that claims are paid and quickly. We are here to support you during the claims process and make sure it’s as smooth and stress free as possible.