Cost of a losing an IR35 case?

[northernladuk]

question too difficult for you? I'm asking for actual examples of what happened to those that were found subject to IR35 and were served with a large tax bill. We've heard nothing about how the BBC presenters have paid the bills. What has my having gone to court have anything to do with the question? You demean yourself with your constant attacks on me. I'm convinced you are an HMRC mole!

No you aren't. You are asking who is liable. Ltd or individual. Working out the route of the money through to the individual as outside and then working out the route if it was PAYE would give you the answer.

And my question wasn't about what happened after a case. Go read it again and if you can't add to the thread without taking it off topic don't bother posting.

[northernladuk]

Nobody here wants to discuss the effects of IR35 changes on a submissive toilet trader.

Hey. We are all in this together.

[northernladyuk]

Hey. We are all in this together.

First they came on the toilet traders, and I did not stand up because I was manacled to the u-bend.

[northernladuk]

First they came on the toilet traders, and I did not stand up because I was manacled to the u-bend.

But what a clean and pleasant smelling u bend it is...

[northernladyuk]

But what a clean and pleasant smelling u bend it is...

Only if you brush your teeth before you lick it clean.

[northernladuk]

Only if you brush your teeth before you lick it clean.

That sounds like D&C to me....

[jamesbrown]

Only if you brush your teeth before you lick it clean.

You know where his toothbrush has been.

[northernladyuk]

You know where his toothbrush has been.

This is a professional forum. Show some respect please.

[DeludedKitten]

I can't say I've seen the answer to this question - who has the liability fallen on, the individual contractor or the Ltd. Co.? My understanding is that it is the Ltd. Co. that should have applied the IR35 rules and so the liability would be on the Ltd. Co. not the individual, providing that the individual director had taken reasonable care and hadn't acted fraudulently. So if there were not enough funds in the Ltd. Co, it would be declared insolvent. But I've not heard of any examples as to how this liability had been addressed. The "individual" cases wouldn't be discussed by HMRC, but some anecdotal evidence would be useful.

Liability is with the limited company, apart from extreme cases where HMRC have applied to transfer the liability to the individual. There is a good blog post from Whitefield Tax about it (I think).

Nobody has said anything about it being successfully transferred to the individual for IR35 AFAIK, and you'd think if it happened HMRC would be shouting about it.

[northernladuk]

Liability is with the limited company, apart from extreme cases where HMRC have applied to transfer the liability to the individual. There is a good blog post from Whitefield Tax about it (I think).

Nobody has said anything about it being successfully transferred to the individual for IR35 AFAIK, and you'd think if it happened HMRC would be shouting about it.

Excellent find!! 9/10. Dropped one for not providing the links for us but nailed it.

IR35 and Personal Liability - can HMRC proceed against an individual? - Whitefield Tax Limited - Isle of Wight Accountants - IR35 specialists

Not quite relevant to this thread but they have a nicely laid out set of figures for tax in the different pay models. Will be very useful for people going inside who are struggling with calculators.

Tax liability example for a contractor/PSC - Whitefield Tax Limited - Isle of Wight Accountants - IR35 specialists