FAQs - Membership fees

How much does it cost to be a member?

You can become a member for less than 30p per day

We have five categories of membership tailored to the different ways in which self-employed people work.

Community membership at £109 a year - For anyone looking to grow their network and access vital knowledge and tools for their business.

Kickstart membership at £170 a year - for those within the early stages of their self-employed career or about to start their business.

Freelancer membership at £260 a year - for self-employed professionals providing services directly to their clients as a sole trader or freelancer.

Umbrella membership at £260 a year - perfect for individuals who provide their services prodominantly via an umbrella company.

Director membership at £371 a year - IPSE’s full suite of benefits and is aimed mainly at people operating through a Limited company or for those where IR35 could apply to their contracts.  

All are inclusive of VAT and can be paid on a monthly basis.

How long is a membership subscription for?

Due to the insurances involved with the Kickstart, Freelancer, Umbrella, and Director categories of membership, we can only offer these with a minimum annual commitment per subscription. Those who pay annually benefit from a discounted rate on membership, however to help with cashflow you can pay in monthly instalments. 

With our Community monthly membership, you can cancel anytime. However, you save 15% by joining us on an annual membership.

To avoid any gap in cover, membership subscriptions are set to automatically renew each year. If you would prefer that your subscription does not automatically renew, please get in touch with the membership team. We will always send out renewal notices ahead of your renewal date so that you can take action if needed.

But I can get tax insurance elsewhere for a few pounds cheaper.

  • IPSE is much, much more than just tax insurance. As a not-for-profit representative body IPSE works hard on your behalf to make your life as an independent professional much easier and make sure that your way of working is recognised and welcomed.
  • IPSE also gives you access to many other benefits such as the money-saving IPSE Rewards platform, vital business templates, and all the right tools to help protect and empower your business, all in one place. 
  • Unlike other providers, many of Markel's specialists are former HMRC employees, which means they are very familiar with the procedures involved and are experts in this field.  
  • Be sure to check what's really on offer from others - often the cover isn't quite what it seems and there's an excess to pay if you make a claim. This alone usually costs more than IPSE Director membership! 

Why aren't the fees deductible from Corporation Tax?

HMRC rules state that only recognised professional bodies fees are deductible from corporation tax. IPSE could become recognised but we'd have to agree to give HMRC our membership list every year. For the privacy and protection of our members, we won't do that. 

I'm stopping contracting this year, should I keep my membership going?

We strongly recommend that you keep your membership in place for at least one year after you stop trading, just in case HMRC launch an investigation. 
HMRC can launch a tax investigation at any time, even if you are not currently trading, and they can look back retrospectively at six years of a company’s history and returns. There is some speculation that the Revenue will soon be looking at ways to recoup losses incurred by providing the various financial packages offered to support people and businesses through the coronavirus pandemic. Your IPSE Membership ensures that, if this happens, we have you covered.
You'll also still have access to all the other great benefits IPSE membership offers you. You can find out more about that here. To discuss your membership options while you wind down your business, get in touch with the membership team.
If you are taking an extended break or closing your company, get in touch with the membership team by calling 020 8897 9970.


Can my company pay my membership fees?

Yes. Your company can pay the membership fees, but they will not be a deductible expense from your profits and therefore won't affect your corporation tax bill.

What happens when I decide I no longer need to be a member?

We hope that you remain with us as a member and continue to support the community, there are five different categories to suit your way of working. The community membership supports our ongoing lobbying work, provides discounts for 1000s of high street brands and restuarants, and access to the IPSE community to share your knowledge to future generations of the self-employed.

If ou do wish to cancel your membership renewal, simply log in to the website and click 'manage my membership' on the right hand side of the dashboard. There is a brief form to fill in which provides us with written confirmation of your wish to cancel. We will then respond by email to confirm your cancellation.  

Please remember that Kickstart, Umbrella, Freelancer, and Director memberships are annual, so you'll be covered and remain a member until your next renewal date.

Can I cancel my membership at any time?

Due to the insurances involved with the Kickstart, Freelancer, Umbrella, and Director categories of membership, we can only offer these with a minimum annual commitment per subscription. Those who pay annually benefit from a discounted rate on membership, however to help with cashflow you can pay in monthly instalments. 

With our Community monthly membership, you can cancel anytime. However, you save 15% by joining us on an annual membership.

To avoid any gap in cover, membership subscriptions are set to automatically renew each year. If you would prefer that your subscription does not automatically renew, please get in touch with the membership team. We will always send out renewal notices ahead of your renewal date so that you can take action if needed.

How do I pay?

You can pay using any major debit or credit card - IPSE does not retain details of your card. We also offer annual/monthly direct debit options on select memberships.


If my company pays, can it reclaim the VAT?

Yes, it's an (almost) normal business expense.


FAQs - Tax and VAT investigation cover

What's the average cost of an investigation?

Over the past three years defence costs have averaged:

  • Self Assessment Aspect Enquiries about £2,100 per claim
  • Business Records Checks about £1,600 per claim
  • Corporation Tax enquiries about £1,100 per claim
  • IR35 about £6,600 per claim
  • VAT inspections about £1,100 per claim
  • Jury Service about £3,500 per claim 
  • Agency/Client failure about £4,400 per claim

Where can I find IPSE's Terms and Conditions?

You will be able to find the terms and conditions at the bottom of every page on this site. To save you some scrolling, you can also find them here


Will I have to pay an excess when IPSE takes on my tax defence claim?

No, absolutely not. IPSE will pay up to £100,000 for professional fees to defend you. There is no excess.


On average, having just one VAT inspection would pay for IPSE Director membership for about four years?

Yes and just one IR35 claim would pay for the Director membership 15 times over!


Besides IR35 investigation, what else am I covered for with the Tax and VAT investigation cover?

IR35 is just one of many tax areas we'll represent you in, other vital areas include VAT disputes, Corporation Tax and Self Assessment enquiries.

Find out more on our dedicated Tax and VAT investigation cover page.

1.1. Full and Aspect Enquiries into:

  • Corporation Tax Returns
  • Partnership Tax Returns
  • Sole Trader Tax Returns
  • Personal Tax Returns

1.2. Disputes into:

  • VAT
  • Employer Compliance (PAYE, P11D &NIC)
  • IR35 S660A

1.3. HMRC use of Information and Inspection Powers/Sch. 36 Pre Disputes in respect of: 

  • VAT control visits
  • Employer Compliance Visits
  • Check of Employer Records
  • National Minimum Wage reviews


  • Interventions
  • Requests for information
  • Capital Gains Tax

Depending on your level of membership, you may also be covered for loss of earnings due to jury service, illness and injury, client or agency failure, and failure of an Agency to honour contractual arrangements. 

For full details including any exclusions, read the IPSE Terms and Conditions.

What does 'business protection' mean?

It's cover for things which might interrupt your ability to provide services to your clients and customers.

Depending on your membership category we will provide cover for interruptions such as jury service, illness and injury and working time you might need to spend with HMRC or tax experts if you are responding to an investigation covered by IPSE's tax defence.

What happens if my agency, umbrella company, or client goes bust?

IPSE will compensate you up to £10,000 if you've been a IPSE Director or Umbrella (for Umbrella default only) member for at least 60 days prior to the claim, and the agency, umbrella company or client first failed to pay you after those 60 days. To find out more, please read the terms and conditions.


What if I need to meet HMRC or IPSE's advisors to discuss an investigation and it has to be during a working day?

IPSE Freelancer members will receive up to £250 per day (maximum £750) and Director members receive up to £500 per day (maximum £1,500) to meet with IPSE experts or HMRC whilst working on a IPSE covered investigation. 

Please note that the loss of earnings benefit for Freelancer or Director members can only be claimed where the Markel Tax investigations consultant has confirmed that the member’s attendance at an HMRC meeting is required.



FAQs - Making a claim

I've already claimed for jury service once, but have been called up again. Just my luck! Will IPSE cover a second claim?

There are no limits to how many times you can claim, as long as you are a valid member at the time you are called up to jury service.


If I'm ill or injured, what cover is in place?

As an IPSE Director member, if you are unable to work due to illness or injury for three consecutive weeks or more, IPSE will compensate you up to £2,000 based on your day rate as per your current contract.

If you are an Freelancer or Kickstart member, IPSE will compensate you up to £1,500 based on your day rate as per your current contract.

All you’ll need to do is fill out a straightforward claim form (found on your My IPSE page) and send it to our membership team in an email with some additional evidence, then we’ll take care of the rest.

If successful, we’ll send your compensation in a single payment, so that you can rest easy knowing your bills are covered and focus on getting back on your feet.

I'm presuming I'd have to be in contract at the time of any claim?

Yes. IPSE can't cover you for losses that didn't actually occur and we can only compensate you for the rate you're receiving from your current client.



FAQs - IPSE services

How do I refer a friend to IPSE?

The more members IPSE has, the stronger our voice is with Government.

Refer a friend to join IPSE today, and not only will you add one more voice to the campaign for better support for the self-employed, but they will also receive £50 off Director membership and you will get a £50 Amazon voucher. If an IPSE Freelancer or Umbrella membership is purchased instead, a discount of £25 will be applied and you will receive a £25 Amazon voucher. For a Community or Kickstart membership, a discount of £10 will be applied and you will receive a £10 Amazon voucher. 

Log in to find your unique referral code on your My IPSE page.


What is IPSE Rewards?

IPSE membership gives you access to thousands of discounted offers on a huge range of goods and services as well as access to wellbeing services on the IPSE Rewards platform through BHSF.  In addition you can get further discounts and special benefits provided by IPSE's partners on our IPSE Offers page.



FAQs - Further Tax Investigation cover

What happens if I am also covered by another tax expense policy, for example through membership of the FSB?

The answer will depend whether you have an event for which a claim can be made under both policies. If this is the case, it is likely that the two Insurers will agree with each other, which one should run the claim, and they are likely to agree to share the costs of the claim. In any event, you will be asked in the IPSE Claim Form whether you have any other insurance that might cover the event for which IPSE could be making a claim under its policy. However, the general rule is that you cannot make two claims upon the same event.

Who provides the cover?

IPSE’s insurance policy is provided by Brit Syndicate 2987 at Lloyds of London via Markel Tax Protection and provides for an Markel Tax/Accountax consultant to deal with the enquiry work.

If I am investigated will IPSE support me at a tribunal?

Yes, and has already done so on a number of occasions! The policy covers costs as far as a tribunal hearing if necessary. However, it is the insurer's decision, not IPSE's, whether to take the case this far. Previously, in one year, three cases were taken to tribunal after five, six and eight years respectively and were successfully defended and resulted in crushing victories for the IPSE members. The average cost of dealing with all three cases from start to finish exceeded £19,000 and the tax liabilities ranged from £25,000 to over £60,000 – there was a lot at stake for all three members who were all very glad of IPSE’s support!

What are the differences between a full enquiry and an aspect enquiry?

Full enquiry

A full enquiry is when HMRC issues the relevant Notice and asks to see the books and records required to make up the Return or accounts. This may lead to protracted correspondence and the Revenue will be keen to meet with you at some point.

Aspect enquiry

These are generally enquiries into one or two specific entries on the Return whereby confirmation of the information is needed. The assumption is that in general terms the Revenue is happy with your return, but has specific matters ('aspects') to clarify with you. If this turns into a full Enquiry, it will be possible for a claim to be made on the full PEI insurance. Exceptions can be seen in the summary of cover.

What should I do if I wish to make a complaint about the handling of my investigation under the policy?

We hope this is not something you will need to do, but should it happen, then you should initially contact IPSE who in turn have been given full details of Markel tax protection’s complaints procedure as set out in the IPSE’s policy.

IPSE full membership entitles all members to acquire an interest in IPSE’s PEI policy (IPSE Director membership provides the same for Sch36 Pre-Dispute matters), but does not give members direct rights against the insurer, as it is IPSE’s policy.

Nevertheless, we are comfortable with the level of service that has been provided by Markel Tax and believe that we also have sufficient safeguards in place to ensure that complaints from members will be dealt with efficiently and fairly.

In any event, if IPSE has been unable to resolve any issues relating to the handling of your enquiry with the Markel Tax then IPSE will have no hesitation in complaining to the Financial Conduct Authority, which is the industry regulator for general insurance.

I have heard insurers mention the concept of ‘reasonable prospects of success’, what does this mean?

This applies to disputes where there has to be a reasonable prospect of winning the argument with HMRC. This does not mean that ultimate success is guaranteed, just that there is at least a 50% chance that the argument could be won. To date, Markel Tax have never had to withdraw from a case on these grounds, but if, for example, the matter was a clear case of disguised employment or it was evident that HMRC had raised a VAT assessment correctly, then insurers could not support such a case.

Please note that ‘prospects of success’ does not apply to Director members who receive a ‘Check of Employer Records’ letter or who are on the receiving end of a Compliance Visit or Business Records Check. These ‘Pre-Dispute’ matters are essentially requests for information and the Plus member is entitled to support in providing the information and the issue of ‘prospects of success’ is simply not relevant.

Is the service available if I submit a contract to HMRC who then advise me that, in their opinion, it fails IR35?

Submitting a contract to HMRC for an opinion does not, by itself, exclude a claim being made under the IPSE policy. However, the Tax Investigations Service does not extend to a challenge against such an opinion, as it does not constitute a formal investigation into the accounts, which is normally notified by a Notice of Enquiry letter. An opinion of this kind needs to be taken into account and a member is advised to seek professional assistance to ensure that a subsequent challenge could be defended.

If, having received such a response from HMRC the member is subsequently investigated, the existence of the previous Revenue opinion will be relevant. Naturally it will be in your interest to demonstrate that you had reasonable grounds for taking a different view from that of HMRC, such as taking corrective action and / or seeking professional advice, as this will be reviewed by Markel Tax under the ‘prospects of success’ clause in IPSE’s policy.

How does IPSE’s Tax Representation Service deal with IR35 investigations?

If you are a Director member, then the moment you receive the ‘Check of Employer Records’ letter from one of the Specialist IR35 offices, you should go to the IPSE website to access a claims form. This will be sent through to the claims department at Markel Tax, and assuming that the claim is accepted, you will be contacted by an Markel tax/Accountax Consultant who will ask you to complete a ‘Letter of Authority’. This letter gives your permission for HMRC to deal with the consultant during the period of enquiry. Once the paperwork is out of the way, the consultant can work with you to answer the opening letter.

What is IPSE's tax representation service?

IPSE has a Professional Expenses (Tax Investigations) Insurance (PEI) policy arranged with Markel Tax Protection, which backs IPSE’s Tax Investigations Service that is provided as a membership benefit with Plus members having a greater level of benefit.

When members are under investigation by HM Revenue & Customs for enquiries and disputes which are included in IPSE’s tax representation service, IPSE can make a claim on its PEI policy and a tax investigation specialist from Markel Tax/Accountax will be appointed to represent you in your case, and the costs that the specialist incurs will not be paid by you.

IPSE Freelancer, Umbrella, and Director members are eligible for the representation service in the following circumstances:

  • Income Tax Full Enquiry (all books & records requested by HMRC)
  • Income Tax Aspect Enquiry (HMRC just interested in specific entries on the tax return)
  • Corporation Tax Full Enquiry (as income tax above, but into your company’s return)
  • Corporation Tax Aspect Enquiry (into specific entries on the company’s return)
  • VAT disputes
  • Employer compliance (PAYE/P11D/NIC) disputes
  • IR35 disputes

IPSE Director members are additional eligible for representation for what are termed ‘Pre-dispute matters’; i.e. for requests for information and documentation. These include dealing with:

  • Compliance visits (VAT & PAYE)
  • Business records checks.
  • The ‘Check of Employer Records’ letters which are the precursor to an IR35 dispute

Director members have representation for checks undertaken by HMRC before the investigations stage, and correct handling of these 'pre-dispute' stages is very important in order to prevent the case from turning into a full-blown, lengthy investigation.

Please note that cases of fraud or criminal investigations are not covered by this service.

I have been supplying a service full time to one client for the last four years. Can a claim be made on the insurance if I am investigated?

Yes a claim can be made because the length of an engagement is not the determining factor for IR35; it is whether the key issues of personal service, control and mutuality of obligations point towards or away from a contract of employment.

Can a claim be made on my behalf if, once an investigation has started, my IPSE membership comes up for renewal and I do not renew it?

You must be a valid and fully paid-up IPSE member (including a renewing member) before the date that the HMRC letter was issued.


Can a claim be made under the IPSE’s policy for routine matters?

If you have a Director membership, then a claim can be made so that you have representation in connection with what are often termed as ‘Pre-Dispute Enquiries’. These comprise PAYE or VAT visits, business records checks or any queries raised under what is known as Schedule36 of the 2008 Finance Act. This not only gives HMRC the authority to undertake the compliance visits and business records checks, but also allows the Revenue to request information and inspect documents (including from third parties) in connection with your business and personal affairs.

It is worth stressing that this is the same legislation that allows HMRC to issue the ‘Check of Employer Records’ letters, the responses to which will determine whether HMRC will progress with a full-blown IR35 investigation. All the more reason for getting specialist representation and all the more reason for having Director membership.

If I were to re-join IPSE would the Tax Investigation Service be available to me again?

Yes, but you must be a valid and fully paid-up IPSE member (including a renewing member) before the date that the HMRC letter was issued.


Will the service meet any additional tax or fines imposed by HMRC if I am caught by IR35?

No, IPSE’s policy only covers the professional costs of dealing with an investigation. These are the fees of the appointed specialist tax consultants, but may in rare situations, and solely at the discretion of the Insurer (see previous FAQ), also include any necessary costs of your accountant. Such costs will be agreed with your accountant in advance and will only be to cover information that is not within your records – for example information held in an accountant’s working papers – and information that you are unable to provide. If the accountant seeks to charge more than the agreed amount, these fees will be your responsibility.  The policy will not pay for any fees incurred by your accountant without the authorisation of insurers.

It is possible to buy insurance cover against having to pay additional tax or fines imposed by HMRC. Markel Tax offers this protection.

In order to insure against these potential tax losses, you will need to have your contract(s) reviewed. In addition to its own reviews Markel Tax will also insure contract reviews undertaken by most of the specialists in this area including Accountax and Lawspeed. 

What about any business interests falling outside my consultancy work?

It is at IPSE’s discretion whether a claim will be made under its policy for any business activities outside of the contractor's principal contracting/consulting business. If a full legal member of IPSE has two companies, one for contracting/consulting and one for something else, then the service only extends to the contracting/consulting business. Nevertheless, the insurer has declared that they will consider a claim made by IPSE on behalf of a member under the policy provided that the member's principal contracting/consulting business comprises more than 50 per cent of the overall annual business income, and annual turnover derived from the second unrelated business stream does not exceed £100,000.

The reason for these distinctions is that the Insurer has to make certain assumptions about the nature of the risks involved. These risks could change if members had significant levels of business income that arise from businesses that operate in a totally different business and tax environment. If these limits are exceeded then there is no cover under the Policy, however the Insurer will apportion the costs of the overall enquiry and pay those (assuming that the claim has been accepted). Consideration may also be given to reimbursing some of the costs incurred relating to that extra element to the claim.

What if I contract both through my company and as a sole trader?

In this situation the service can extend to investigations into both your company and your activities as a sole trader, as this scenario is unlikely to increase either the risk of investigation or the costs of the investigation. However, if you have two separate businesses, you will need separate memberships.

Why does the summary of cover state that the insurance expires on 31 Dec 20xx?

The IPSE Tax Investigation Insurance policy is a group policy taken out by IPSE on behalf of its members. The group policy runs from 1 Jan to 31 December annually, and the service summary shows the expiry date of the policy as 31 December. The IPSE group policy with the insurers has been renewed to cover until 31 December each year, and you can read and print the updated service summary.

It is IPSE's aim to maintain this policy and effect a renewal each year. However, IPSE cannot guarantee that the terms or benefits under the policy of insurance will remain unchanged throughout the period of your IPSE membership.

Will the service pay for the services of my accountant to deal with an enquiry?

This is a representational service, which will only pay for the fees incurred by a specialist from Markel Tax or Accountax to deal with the enquiry. However, we do recognise that there are occasions where only the accountant has the information needed to answer a specific query and the appointed consultant will contact your accountant to agree a fee that insurers will pay your accountant to provide that information.

If you choose to ask your accountant to deal with the matter from start to finish, then you will not be able to benefit from the IPSE’s representation service.

Do I need to be working to one of IPSE's model contracts in order for a claim to be made?

No, but the insurer has the right not to support weak cases based on the advice of their tax advisers. Hence if your contract was evidently one of disguised employment, then they would be less likely to support you and more likely to press for a speedy settlement.

What should a member do if there are issues that are debatable?

Please contact the IPSE tax helpline if you are unsure whether you are under enquiry and they will involve the claims team and IPSE. If it is felt that a claim, under the IPSE’s policy should be made.

Does IPSE's PEI pay the VAT element of any invoice as well as the net cost of any fees?

One of the principles of insurance is that the claimant should not suffer any loss and so there are occasions where insurers will pay the VAT on the cost of a claim. There are two examples where this could apply to a freelancer:

  • If you are on the VAT Flat Rate Scheme, i.e. your VAT payments are based on a percentage of turnover, then any VAT incurred is a cost and cannot be reclaimed.
  • If your turnover is below the VAT threshold and you are not charging VAT, you will not be able to recover the VAT on any of your outgoings.

In both of these cases, the insurance will pay the gross value of any claim. You are able to identify whether you are on the Flat Rate Scheme or not VAT registered at the time you make a claim.

If neither of these applies, then you must pay the VAT element of the cost of the claim and include it in your next quarterly return so that you can claim the VAT back from HMRC in the usual way. Therefore, you do not suffer any financial loss.

Does IPSE’s tax investigations service extend to personal tax affairs?

Yes, the member’s personal tax affairs are covered. However, please note that where you have rental income in excess of £50,000 p.a., then this should be treated as a separate business.

When must a claim under IPSE’s tax investigation policy be notified?


As soon as you receive notice from the investigating authority that you are to be investigated, you must notify IPSE immediately and certainly within the period of insurance. Normally such a letter will notify both you and your accountant of the intention to investigate and will mention that the enquiry is taking place under Section 24(1) Schedule 18 Finance Act 1998 (for limited companies), Section 12AC of the Taxes Management Act 1970 (for partnerships) or Section 9A of the TMA 1970 (for sole traders and individuals). Notification is made by contacting the IPSE Membership team via email or telephone and confirmation is received.

The importance of making the claim as soon as you receive notification is even more important now that HMRC are operating within very defined time limits. This is particularly the case where you receive a ‘Check of Employer Records’ letter, which is the precursor to an IR35 Dispute. Please note that the policy specifically provides for the IPSE’s appointed claims handlers to deal with these (and other) enquiries; therefore you may invalidate the cover if you ask your own accountant to deal with the enquiry.

In the case of a VAT dispute, any letter sent to you by HMRC following an inspection, which expresses dissatisfaction with your records, should be notified to IPSE. If in doubt, please ring the tax helpline to make sure that you get the most out of your IPSE membership.

The same approach should be taken following an Employer Compliance Visit. If you have IPSE Director membership, you should notify IPSE immediately when you become aware of an Employer Compliance, VAT or any other visit including a business records check, as Director membership extends the protection to the pre-dispute phase. That also means that Director members have representation in order to respond to the ‘Check of Employer Records’ letters which announce the first phase of an IR35 review.

If you have any queries, or are unsure whether your circumstances constitute a claimable event, then if you are an IPSE member you can telephone the tax helpline. A tax specialist will then advise you on your situation and the next steps you should take.

Please remember that IPSE’s policy provides for representation by investigations specialists and so if you incur professional costs before advising IPSE, then not only are insurers NOT liable for those costs, but you could be missing out on best representation.

Can a claim be made under IPSE’s PEI policy if I give up my membership?

No. You must remain a full legal member of IPSE in order to benefit from our professional expenses insurance coverage on an ongoing basis.


If I become a member myself, are the directors and shareholders in my company covered too?

No, the service only extends to full legal members of IPSE, but the service will extend to the legal member's spouse or co-habiting partner if he/she is an employee of the contractor's company - provided the spouse/partner is not also a contractor working through the company as an employee or director. If there are other contracting directors in the company who are not members of IPSE, the service will not extend to those individuals but it will apportion the costs of the company enquiry and pay the proportion that relates to the IPSE member (assuming that the claim has been accepted).

The service will not extend to an enquiry into any business interests that the spouse/co-habiting partner may have outside of the contracting company.


IPSE is a UK non-profit membership organisation for the self-employed

The UK's only not-for-profit membership organisation for the self-employed.

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