Insuring your iPad Air2 – Should you get AppleCare or something else?

Are you planning on purchasing a new iPad Air 2 by replacing your old iPhone? If answered yes, one of the most vital questions that you must be thinking of is whether or not you need AppleCare+ insurance or whether you should let go of the thought of insuring it altogether. At Apple Stores, this is the most common question that the representatives get asked and hence this article will deal with some suggestions on the kind of insurance that you may need for your iPad. It is true that no insurance plan is right for everyone as it doesn’t suit the needs of different users. Read on the concerns of this article to know which according to us are the best options to insure and protect your iPad.

AppleCare+ for iPad

When you buy an iPad you should be aware of the fact that it comes with 1 year of hardware repair through its limited warranty period and up to 90 days or three months of support. It is through AppleCare+ that your iPad gets an extended coverage of 2 more years from the exact purchase date of your iPad and also adds 2 incidents of damage caused due to accident. Each incident will however be subject to a $49 service fee over the tax which is applicable.

When you purchase your iPad, you get a complimentary coverage which is known as the AppleCare coverage. This doesn’t cost you a penny and is automatically added on the day of your purchase. The things that AppleCare offers you are:

  • 1-year limited warranty against any kind of blemishes
  • 90 days of complimentary support

Since the basic version of AppleCare doesn’t offer any kind of accidental coverage, AppleCare+ becomes important. This costs you an additional $99 and should be purchased either at the time of purchase or within 60 days of purchase.

Did you check your credit card benefits?

There are a lot of people who fail to realize that there are different types of credit cards that come with lots of insurance policies and warranties that are built in to the card. For instance, AAdvantage Card offers another additional year of coverage on top of the manufacturer’s warranty. This means that the iPad Air that one purchased with AAdvantage card gets additional coverage.

In fact there are many credit card companies that offer many kinds of perks and benefits. Although this fact has become commonplace, yet there are many consumers who don’t seem to take benefit of such benefits. Just make sure you always check your member benefits in order to be aware of the insurance coverage that your credit card company offers you.

Depending on factors like the time you’ve purchased your iPad, how long you’re going to keep it with you; you have to decide which type of insurance you need. Should you get AppleCare+ as your iPad insurance or should you be happy with the basic AppleCare that is offered to you? Weigh your decisions with prior knowledge.

IR35 Investigations: Understand the HMRC Triggers and How to Avoid Them

IR35 is one of the most feared parts of the Finance Act because it far more ambiguous than other parts of the law and therefore open to individual interpretation.

Any self-employed individual in theory could fall foul of IR35, but the workers most at risk are those operating a limited company.

Much has been written about the factors which could result in your contract being viewed as ‘disguised employment’ but what makes HMRC launch an investigation?

Here’s a guide to some of the factors which could leave you vulnerable to a closer look from the taxman.

Bad luck!

If HMRC decides to take a further look at your accounts and queries whether you fail the IR35 criteria, it may not be because there were any red flags with the information you submitted.

Some individuals are simply chosen at random, just like any other kind of audit. It is known that the taxman picks one out of every 1000 tax returns to look at more closely, a selection which has no scientific basis. You could simply therefore be one of the unlucky few HMRC chooses to review more closely!

If your number comes up, HMRC could – and often do – opt for a full review. Unlike an aspect review, it means you will be asked to provide copies of all of your information so the whole set of your accounts can be checked.

You could end up owing a lot more money on your tax return if HMRC decide IR35 rules apply to your situation

You could end up owing a lot more money on your tax return if HMRC decide IR35 rules apply to your situation

Risk-assessed selections

However, simply being on the wrong end of a lucky dip is not the only way in which you might find your business being scrutinised by HMRC for IR35 compliance.

The taxman has a number of criteria it uses in order to flag up cases which could be deemed to have a higher risk of being disguised employment rather than true contractor status.

HMRC keeps the exact nature of the flags it uses a closely guarded secret but in a statement to a trade body for contractors had this to say:

Any individual who provides his/her services through a service company to an end client potentially falls within IR35. HMRC seeks to narrow those cases subject to investigation by considering a range of factors, including, but not exclusively, sectors, engagement patterns and the nature of the service company.” 

Therefore, whilst it is not possible to say definitively every scenario which might cause HMRC concern, there are a few more obvious indicators a tax inspector may look for.

The primary concern under IR35 is that the individual is not really self-employed and has only set up the company to disguise the work he is doing on an employed basis, thus avoiding paying proper deductions under the PAYE system.

If an individual truly is in business, you can expect them to be active in promoting their business to attract customers, making investments to improve the company, perhaps having their own property (of whatever type) as well as having a company logo and headed paper.

On the flip side, an individual who is using IR35 to disguise the fact that he is doing the same work as when he was employed, will be making very little attempts to grow the business and will not be required to invest in purchasing his own equipment, materials or products.

With this in mind, one of the most significant red flags HMRC look for is the deductions on a set of accounts. A return with very low deductions could indicate that the individual is simply working for some-one else, on their premises, and using the company as a ‘vehicle of convenience’.

On the same subject, not having any other workers on the books can also be a sign that your company is simply a cover for your employment. Whilst it is entirely possible that you could be a contractor without assistance from any other workers, this could raise a flag to the taxman to look at you more closely.

Failing to appear professional in correspondence with HMRC can be another indicator that you aren’t used to acting as a business in your own right. For example, whilst not every small company may have headed paper, if you do get some, you immediately will appear better equipped to transact in the world of commerce and less likely to attract attention.

Finally, as a business you would normally need to have cover such as professional indemnity insurance in place. If you don’t have this, HMRC might seriously question whether you really are ultimately responsible for the work you are performing and invoke IR35.

Picking a professional-sounding name for your company and investing in letterheads could help your business appear more legitimate

Picking a professional-sounding name for your company and investing in letterheads could help your business appear more legitimate


Even if you operate a genuine company, no-one really wants the hassle of a full HMRC investigation, especially as the IR35 legislation can be rather contentious at the best of times. One way to help protect yourself is to get a good accountant to complete your tax return. This will ensure that your accounts are as professional as possible and that you have expert advice on how to ensure you are complying with the IR35 legislation.


Image credits: Images_of_money and Scott Roberts