I’ve had an IR35 letter – what should I do?

If you receive a letter which mentions IR35, you should immediately assume that you are in the early stages of an IR35 enquiry. Don’t panic though: with a bit of planning and advice you can quickly ensure you are in the best position possible.

You should seek advice from an IR35 expert and not respond to HMRC until you are confident that the information you provide is not only accurate, but also presents a strong argument that you are outside the legislation.

It is always a good idea to engage an expert to deal directly with HMRC on your behalf. A consultant who has actually handled IR35 enquiries in the past is worth its weight in gold as they will be well aware of HMRC’s tactics, which can often catch the uninitiated out.

Such an expert can be hired on an hourly rate if you do not have an insurance policy in place, but be aware that IR35 enquiries can be quite lengthy affairs so the costs can mount up. If you do have tax investigation insurance, either directly or via your accountant, you should notify the insurer immediately to ensure the claim is registered and the consultant can begin work. It is always a good idea to check your insurance policy wording to ensure you are complying with the insurer’s terms & conditions.

A strong, well-considered response to HMRC’s initial probing will result in a far easier ride in an investigation. HMRC may agree at the outset that you are indeed outside IR35, although the chances are that they will be inclined to dig a little deeper.

IR35 is based around historic case law and a good amount of interpretation. Getting HMRC to back down takes determination and knowledge, which is why expert help is strongly recommended. Contact us today if you want to learn more about IR35 and how our services can help.

 

More Blogs

Do I need an accountant as a sole trader?

Sole trader accounting can sometimes be simple: some sole traders may well find that they have no need whatsoever for an accountant. However, accountants for sole traders are an incredibly useful resource that can save you a great deal of hassle and time – and potentially even money. If you’re asking yourself, “Do I need an accountant as a sole trader?” – read on. In this blog we cover the ways in which accountants for sole traders can help, as well as how to choose the best sole trader accounting firm for your needs.

Accounting Team

Do I need an accountant If I am self-employed?

It’s not a legal requirement for those who are self-employed to use the services of an accountant. However, working with self-employed accounting professionals who understand the unique needs of the self-employed can often save you time, money and stress. Read on to discover more about the accounting needs of the self-employed, common accounting challenges you may face, and when working with an accountant makes sense.

Accounting Team

Do I need an accountant for my small business?

If you’re a small business owner – or looking to start a small business – you may be tempted to handle the accounting side of things yourself. You may think that this aspect of the business will be simple when you’ve started small…but is this really the case? In reality, small business accountants can save you money. They’re a trusted partner for a range of things, from planning and setting up your business to financial management, tax obligations, business growth strategies and more. Read on to find out how small business accounting services could improve your chances of business success…

Accounting Team