Help Required: IR35 neglected

[malvolio]

The OP barely understands basic accountancy, I wasn't going to try and unravel the deeper mysteries of IR35 for him. And he'd be better off with PCG than QDOS, but of course YMMV...

[Ardesco]

Didn't realise PCG were doing professional contract reviews as well now.....

I have always thougt PCG for insurance and general contractor support, QDOS freelancer club for the free contract reviews

[NotAllThere]

...So the whole point of whether i am considered under IR35? Let me give you my contract terms:

What you've given isn't your contract terms. The specific words used are extremely important. (though not the be all and end all). So to you're next question:

Does that now justify that this would be caught under IR35?

the answer is NO.

I have decided to ditch the professional opinion to tell me that would be caught under IR35 as i already know.

Without a professional opinion, you don't know. You have HMRC's opinion which is hardly unbiased and very unlikely to be based on any understanding of the legal issues. ( In fact, even with a professional opinion, nobody knows until it's tested in court. But a legal opinion from a neutral professional gives some reassurance. )

Seems like a no-brainer to me. Risk £75 in order to potentially save £1000s. But hey - you want to throw money at an accountant and the tax man (plus possibly penalties and interest) - I'm sure they'll be grateful.

[malvolio]

Didn't realise PCG were doing professional contract reviews as well now.....

I have always thougt PCG for insurance and general contractor support, QDOS freelancer club for the free contract reviews

I wasn't being entirely serious, . The one thing the PCG does do is get you access to enough well informed opinion and experience plus some detailed members guides that you can probably make a pretty good assessment of your status anyway.

The other point is that a contract review for IR35 is pretty pointless if you do understand the subject reasonably well. Far better to go to someone like Lawspeed who will look at the whole thing, not just the status tests. That might be valuable if, like the OP, you aren't really clear on the basics. Equally, of course, if you're happy with the commercials but unclear on (or nervous about) IR35, B&C are rightly recommended. As always, it's horses for courses.

[djhns]

Ok, maybe i am over analysing things but i just don't want to be caught out. As this whole thing can be quite grey... Maybe i should just get my contract reviewed and for that 2nd opinion. And then move on from there.

Anyway, i have sent my contract in for review... i'm sure there may be other factors such a statement from the client to support the case.

[The Lone Gunman]

Ok, maybe i am over analysing things but i just want to be caught out. Although, truely i think i really am.

Maybe i should just get my contract reviewed and for that 2nd opinion. And then move on from there.

If you get an opinion that says you are outside but HMRC find you inside you have some protection from penalties as you have made an attempt to sort out your status.

IR35 is complex and difficult to understand. Some of us have been wrestling with its finer points for the last 10 years or so and still would not claim to be able to decide if we are in or out. What makes you so sure that you can make that decision? Particularly as your posts here seem to make it clear that you are ill informed to make that decision.

[ASB]

Ok, maybe i am over analysing things but i just don't want to be caught out. As this whole thing can be quite grey... Maybe i should just get my contract reviewed and for that 2nd opinion. And then move on from there.

Anyway, i have sent my contract in for review... i'm sure there may be other factors such a statement from the client to support the case.

If you want to avoid that greyness - and there is always some - then yes. Just assume you are caught. You have a bit of a tax minefield to sort out though. Since with IR35 you are talking about a deemed salary rather than an actual one you can get into an interesting CT muddle and quite possible double taxation if you don't pay it as an actual salary.

In any event all the information you need - including worked examples - can be found on HMRC's website. Suggest a search including the words deemed payment calculation might be useful.

By the way, one of the most major causes of investigation is caused by incorrect accounts being filed. These are normally filed by people who think they know how to prepare their accounts. The resulting stress is not a lot of fun.

If you are so absolutely sure you are IR35 caught maybe you should give serious consideration to a decent brolly.

[djhns]

If you want to avoid that greyness - and there is always some - then yes. Just assume you are caught. You have a bit of a tax minefield to sort out though. Since with IR35 you are talking about a deemed salary rather than an actual one you can get into an interesting CT muddle and quite possible double taxation if you don't pay it as an actual salary.

In any event all the information you need - including worked examples - can be found on HMRC's website. Suggest a search including the words deemed payment calculation might be useful.

By the way, one of the most major causes of investigation is caused by incorrect accounts being filed. These are normally filed by people who think they know how to prepare their accounts. The resulting stress is not a lot of fun.

If you are so absolutely sure you are IR35 caught maybe you should give serious consideration to a decent brolly.

Thanks ASB

I am not currently being reviewed by HMRC for starters.

So basically i have two routes to choose:

1) If the reviewer comes back that i am most likely outside IR35 + i can get a client's statement regarding the role and project in question also to back that it falls outside IR35, then i will leave things as is and carry on as usual. Otherwise;

2) I will just come clean and declare to HMRC that i have made an honest mistake and i would like to correct all my accounts including the associated fines, penalties and interest charges.

Another point i would like to make is that my contract work ceased in Apr08 since i have picked up a permie job so i have been considering winding up this Ltd company as it is no longer use to me.

In future, if i do pick up any contract work, i will make sure terms are stated in the contract or better just get an accoutant to do all my work.

[djhns]

Just another question:

If a company is wound up. Will it still be subjects to checks and reviews?

[oracleslave]

Just another question:

If a company is wound up. Will it still be subjects to checks and reviews?

You're not asking for help in doing something illegal are you?