@#%$ for IR35

[Moose]

Wha's the chances of getting caught if you say 'honest gov, I thought I was outside IR35'

[planetit]

If you can show that you took some steps to determine whether IR35 applies (like getting your contract reviewed, or just noting down the reasons you believe you are outside) then you won’t be penalised if the IR come along and prove you are inside. You will just have to pay the extra tax and interest.

[Moose]

I spoke to Quay Accountancy today and they said they check the contract and submit it to the IR for review to determine IR35 status.

But if most people don't get the IR crawling over them, then why would you temp fate by being proactive in contacting them? :rolleyes

[Vetran]

you shouldn't. Join the PCG (or at least read some of their guides) use a sensible review service that doesn't submit your contract and get some insurance.

[partimer]

>You will just have to pay the extra tax and interest

That's the problem.
You could be running your business exactly the same way for years and the way your accountant told you to. Hire your Mrs as secretary. Pay dividends to her. Then the IR can reinterpret a rule and bang heres a request for 35k (+ interest) under section s660a.

Same with IR35. Make lots of effort to be outside it and then you'll probably still end up at the special commission under appeal.

The IR35 treat each contract separately so you could have two simultaneous contracts with 2 different customers and the IR will still try it on.
What a cr@p piece of legislation. They could just have said "no company can pay dividends to one shareholder of greater than 30 percent of turnover" but then the MPs who sit on the board of directors would lose out ...

[planetit]

True, but at least you won’t get locked up for tax evasion.

Join the PCG for the insurance. Follow the advice on running a business outside IR35. Maybe get your contract reviewed by an expert if you think it’s worth it. Don’t submit it to the IR for review.

[4Contractors]

submit it to the IR for review to determine IR35

This is the worst possible step to take unless Quay are clever enough to get the contract checked anonymously.

I doubt it somehow - steer well clear of this idea - you will seriously regret it !!

[Vetran]

IR won't give an opinion on a contract unless it is in force so you can't submit it anonymously.

[Moose]

Quay contacted me today to say that they would never submit a contract to the IR without the express permission of the client and that their contract review was one of the services they provide, but not compulsary.
(They worked it was me from my user name and email address )

So chaps...don't fear, Quay won't stitch you up.

[Vetran]

There you go then, as I said I personally wouldn't get them on the Radar if I could avoid it.