IR35 - Guilty as charged! - Updated May 2016 - NOT GUILTY!

[Batcher]

I think HMRC would be crazy to go after PCG members, to be honest, since they have professional advice available to them right from day one.

My untested theory is that when the initial request for a PAYE inquiry or similar (which will lead onto a full blown IR35 investigation) is answered by PCG, HMRC will either put the case on the back burner until it's forgotten about or give it to a junior member of staff to give them the experience of being bum raped

[centurian]

I'm not prepared to name accountants as I'm not entirely sure this was their fault - I think they acted in good faith.

Your assessment is right - generic support pimped by my accountant. And yes looking at changing accountants after this.

You appear to have come to realise that your accountant wasn't quite as blameless as you first suspected. Worst case, they may have got commission from the sale, or other indirect inducements - ask yourself - why they were pimping you the policy in the first place.

Generic insurance is pretty much useless for contractors. Setting aside IR35, there is little you can be investigated for, which would consume much accountancy time to sort out. VAT/PAYE/CT - either you have paid the right amount, or you haven't - contractor accounts are simple enough such that it doesn't take much time to work out who is right - travelling expenses would be the only other thing which could be awkward.

In fact, I would say generic insurance was worse than useless in your case. It probably gave you a false sense of security, meaning you might have neglected to take other precautions which might have helped you.

[Munchers]

You appear to have come to realise that your accountant wasn't quite as blameless as you first suspected. Worst case, they may have got commission from the sale, or other indirect inducements - ask yourself - why they were pimping you the policy in the first place.

Generic insurance is pretty much useless for contractors. Setting aside IR35, there is little you can be investigated for, which would consume much accountancy time to sort out. VAT/PAYE/CT - either you have paid the right amount, or you haven't - contractor accounts are simple enough such that it doesn't take much time to work out who is right - travelling expenses would be the only other thing which could be awkward.

In fact, I would say generic insurance was worse than useless in your case. It probably gave you a false sense of security, meaning you might have neglected to take other precautions which might have helped you.

Yes the accountant is at fault, though I suspect through incompetence and ignorance rather than malicious. Hense why I reconsidering his position.
The main point, as you say, is we thought we had professional support available and it turned out to be a false sense of security - fortunately we realised just in time so we sacked them and employed a firm called Tax Enquiry Solutions who, at short notice and cost, managed to get us back on track.

[TheFaQQer]

Yes the accountant is at fault, though I suspect through incompetence and ignorance rather than malicious. Hense why I reconsidering his position.
The main point, as you say, is we thought we had professional support available and it turned out to be a false sense of security - fortunately we realised just in time so we sacked them and employed a firm called Tax Enquiry Solutions who, at short notice and cost, managed to get us back on track.

Good luck.

I'd be asking about their IR35 experience, if it were me, since they don't mention IR35 anywhere on their website.

[tractor]

...

Good luck.

I'd be asking about their IR35 experience, if it were me, since they don't mention IR35 anywhere on their website.

Nothing about corporate structure, company details, an 0845 number. I would be doing a little more diligence. They may well be above board and effective but I would do a little checking.

[Munchers]

Nothing about corporate structure, company details, an 0845 number. I would be doing a little more diligence. They may well be above board and effective but I would do a little checking.

I agree, having been left high and dry by original consultant we contacted Bauer & Cottrell (via this site). They gave us good advice but said it was too late for them to get involved, but at least they gave some good pointers. My partner found this other firm and she decided to use them - and they produced a comprehensive response. Time will tell whether it was good enough.

[tractor]

..

I agree, having been left high and dry by original consultant we contacted Bauer & Cottrell (via this site). They gave us good advice but said it was too late for them to get involved, but at least they gave some good pointers. My partner found this other firm and she decided to use them - and they produced a comprehensive response. Time will tell whether it was good enough.

Well, good luck with it all, I hope it wasn't too late. I would be interested in the outcome so don't forget your reporting duties

[Munchers]

Well, good luck with it all, I hope it wasn't too late. I would be interested in the outcome so don't forget your reporting duties

No problem.

[northernladuk]

Good luck.

I'd be asking about their IR35 experience, if it were me, since they don't mention IR35 anywhere on their website.

Exactly what I thought. Your tax isn't in question, your IR35 status is. The result will dictate how your money is taxed.

[Munchers]

Exactly what I thought. Your tax isn't in question, your IR35 status is. The result will dictate how your money is taxed.

And I am lot wiser today.
I think they did a good job and if you want to view I'll happily share and accept comments.