interest and fines levied if caught for IR35?

**ASB** · 5 May 2007, 11:08

Originally posted by spenj

Does anyone have any examples of the size of the fines and interest charges that people have had to pay if they have been caught by the IR for IR35?
Also be interesting to know what proportion of contractors get investigated in a given year.

Interest is statutory, 7.5% p.a. if i recall correctly. Its pretty easy to find on hmcr website. Penaltys are covered under the normal penalty regime. 0-100% depending upon level of cooperation and serverity of offence. IR have a page on it. Basically if you have made reasonable attempts to determine status and beleived outside they won't go for penalties. Again lots of info on the IR website.

What seems reasonable to you and what you might have to convince an HMIT or commissioner of may be different though.

**spenj** · 5 May 2007, 13:52

Thanks ASB, I wasn't expecting it to be documented on the HMRC website but I've found the relevant stuff now.

interest and fines levied if caught for IR35?