Help Required: IR35 neglected

[djhns]

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

I can't see that being an illegal question? It's just a general question.

Everything i have stated is my own opinion on things. Say if i really am not caught under IR35 after the review comes back? This would mean i may have been just panicking and worrying about things i shouldn't have in the first place.

[djhns]

I have already stated that i am trying rectify any mistakes and to get things right.

Do you think i would deliberately do things illegally and risk a major court case or jail sentence?

NO WAY!!

[ASB]

Just another question:

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

There are a number of ways, but assuming you go the "informal" route then you have to get HMRC permission.

If I were in your position I might be inclined to apply for ESC16 giveing the relevant undertakings, ensure the CT as currently calculated was paid, empty the bank account and ask for dissolution. After 3 months it's gone. I don't think I'd bother about worrying whether I was IR35 caught or not. It's down to HMRC to raise any objections before giving permission. This gives them ample opportunity to enquire.

There is no suggestion this is in any way illegal.

I am not aware of investigations being triggered by winding up the company, but it is certainly possible. HMRC have to be satisfied everything is up to date. It's the sort of thing I'd discuss with my accountant.

[djhns]

Thanks ASB for your suggestions.

The company has not traded since Apr08 ie 14 months ago and i'm not doing anything with it atm.. so i should wind it up anyway.

[djhns]

The contract reviewer has come back with bad news...... and that on initial review, it looks like i'm most likely caught under IR35.

I am engaging a professional accountant to help me sort out this mess which means i'll have to hold my hands up to the HMRC and admitt that it was my fault and ignorance.

I think i may need to cough up around £10K or so....

[Fred Bloggs]

I think I'd wind the company up, pay all outstanding VAT and CT and forget about it. HMRC are very unlikely to open a full inquiry over this at a later date I reckon.

IANAA etc......

[jmo21]

I do everything to make sure I am not caught by IR35 for obvious reasons.

I get my contracts reviewed and amended as appropriate, and make sure how I carry out the work is as outside IR35 as is possible - clearly as IR35 is so woolly a lot of that is guess work.

That being said, even if if a contract was badly worded and I *may* be caught with it, I always declare as being outside IR35.

If I ever get investigated for those contracts, I'll worry about paying the tax back then, not before.

[ASB]

I think I'd wind the company up, pay all outstanding VAT and CT and forget about it. HMRC are very unlikely to open a full inquiry over this at a later date I reckon.

IANAA etc......

They can't open an enquiry after the company has been struck off. My belief (and it's subjective, not shared by everyone) is that there is no mechanism for HMRC to attack AFTER the company has been wound up; they can't even try and attack the director personally - I can't remember the reasoning though. I went through it at length with my accountants when I Stopped trading. However it is possible the position has changed due to the transfer of obligation provisions recently enacted.

[pzz76077]

The only certain way to avoid IR35 = don't work in the UK.

PZZ

[Gonzo]

I am not aware of investigations being triggered by winding up the company, but it is certainly possible. HMRC have to be satisfied everything is up to date. It's the sort of thing I'd discuss with my accountant.

I always thought that too but this article throws some doubt on the subject.

http://www.contractoruk.com/004376.html