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.
Self Assessment – Q & A
Self-assessments. We have all heard of them, you maybe even know what they are. However, here at QAccounting some of our most frequently asked questions are about self-assessments. So below we have outline some of the most common questions we get asked, and the answers we get so tired of giving… just kidding.
Setting Up a Limited Company – 5 Key Things to Consider
If you are looking at going self-employed, then setting up as a Limited Company (LTD) may be the best option for you.
The Benefits of Having an Online Accountant
Here at QAccounting we are part of one of the UK’s largest contractor service providers. We started operating over a decade ago (around the same time DFS started their first sale) and have been dedicated to serving self-employed professionals ever since. One of the perks of choosing and accountant like QAccounting is that we offer all of our accounting services online.