IR35 Investigation

[gingerjedi]

The HRMC guide is so vague and if I was completely honest I would fall into the grey area so I am bound to go with the most tax efficient solution, they say if you don't know where you fall to contact your local IR enquiry centre and let them decide... hmm I can't see them ever deeming someone outside if it was as simple as that and its not as if you can ignore their advice after you have just given them your details.

They should have a point’s based system to make it easier and stop making people feel like criminals.

[pisces]

In the first instance the company will be liable.

Should that become insolvent, HMRC (& the insolvency service) will come after you personally.

This never used to be the case for low value debts, but it is now. Also, if your company registered address is your home address this can complicate things vastly....................

My work collegue was prosecuted for non payment of tax arrears when he shut his company down and went permie but didn't pay his final tax bills. He won his case in court as they ruled that the company was no longer in business.

[gingerjedi]

Just thinking, say you were subject to an investigation would you get the chance to say "it's a afair cop" and pay whatever was owed before it went any further or is it more complicated than that?

[youngguy]

Just thinking, say you were subject to an investigation would you get the chance to say "it's a afair cop" and pay whatever was owed before it went any further or is it more complicated than that?

Good point. What would concern me is that the IR are phoning up all previous contracts saying I am been investigated. I know its hardly a murder ccharge but it could harm the reputation as they are effectively implying you are avoiding tax.

[Lockhouse]

Good point. What would concern me is that the IR are phoning up all previous contracts saying I am been investigated. I know its hardly a murder ccharge but it could harm the reputation as they are effectively implying you are avoiding tax.

This happened to me - I lost all hope of going back to two clients because of it - and having to exert pressure to get the information in my defence. The problem is one of proof - how do you prove that you have lost business? It's intangible as you never had it in the first place. No consideration was given to any commercial concerns that my company may have had at all. It made me very bitter towards the Revenue - OK, you can investigate me for tax, but you have no right to destroy my business and reputation - especially as I work in an area where I used to get most of my work through word of mouth recommendation. B*stards all of them <rant over>.