Due to the nature of the IR 35 tax legislation, Can I take an insurance cover ?

Fatawa Question

HMRC have made a law against disguised employees in (April 2000) who are operating under a Ltd company. This law is called IR 35. The problem is no matter how safe you think you are if case goes to court it’s just simply your word against theirs. If you represent yourself you will mostly likely lose the case and have to pay out thousands of fines financially crippling you. This is affecting a lot of people and after your own research you will agree that the law is very unjust and not even clear hence I wanted to buy the products listed below. In light of this please advise whether it is permissible in Shariah to buy any of the products below from : (a) Professional indemnity (if you have this it helps you to stay outside of IR 35) (b) Public and employers liability (if you make a mistake at work it helps you pay for it) (c) Tax liability cover (all taxes / interests / penalties will be paid if you lose court case if caught inside IR 35) (d) Tax enquiry insurance (if you get investigated the insurer represents you all the way to protect, there is no chance of protecting yourself-it is extremely difficult as HMRC will try their best to “find” something in your contract and work practices in order to fine you and pay backdated taxes) (e) Full IR 35 contract review

Fatwa

Click hereto view more

Publisher

al-Qalam Shariah Scholar Panel

Publication Date

2017-04-10

Country of Publication

United Kingdom

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Insurance
• Taxes

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-726551

• APA
• MLA
• AMA