Claiming tax back paid under IR35

[ancient]

Any one had experience of claiming back monies paid under IR35?

e.g. restating that you were on IR35 but probably should not have been.
I paid mega wonga under IR35 during a three year period.

I did not ask to go on IR35, the Accountancy company just put me on it.

The work was done for 1 Client (a consultancy as an associate) and another period through an agency, in both cases the end customer was the same.

Noticed a scheme on the PCG website (Accounttax)

[simondolan]

We've done quiet a few of these for clients. Is fairly time consuming as there is a lot of paperwork to do, but in the end we have always managed to claim back the overpaid amounts - sometimes running to over £25k.

Drop me a mail if you want to discuss it

[email protected]

[ancient]

Thanks Simon, I will be in touch, as it does involve significant numbers (700k income over three years).

I may be engaged in another large fee project (I will know in the next few days) so I may need some help with that also, and how I might best go about things.

I need to kill two birds, the past and the future.

[philip@wellwoodhoyle]

Yes, we've done it also a few times. Never had any problems with the Inland Revenue - just send them all the corrected payroll returns/tax returns/accounts etc and they repay pronto.

[ancient]

So what is the underlying argument that needs to be presented for restating the situation?

My existing accountant (the Accountancy Clerk not really an Accountant) put me on IR35 by default. After putting me on IR35 they said my first contract was IR35-caught, even though a guy on the same contract had a letter (legal advice) saying he was not. 'Company x' said my second contract was borderline.

My company has been in wind-up for twelve months (I have been doing other things) and I have heard nothing, and have about 8 grand case one losses, probably awaiting the discretion of IR, still do not know if I will get a rebate.

I may be about to do a new contract in the next few weeks, and I have to decide do I get the company out of hock? or do I get a new one.

'Company x' have been very good and efficient at the accountancy / paperwork process, but have they looked after my interests? - not to sure. Sometimes these companies are just offering book-keeping services with little advice rather than true Accountancy (I spent a few years working in a Chartered Accountancy practice as an Audit Clerk - 30 odd years ago) so I know how they exploit labour.

I think this will be an interesting thread for a number of people out there.

Perhaps I should write off the experience and do things a little more intelligently next time?

[Mordac]

To be honest, any half-wit can do the basic "books" stuff. What you (in theory) pay an accountant for is specialist knowledge and advice, on matters such as this (although being a contractor yourself, you presumably understand this concept).
Best of luck, and I hope you get back what you may well be due, but if you'd done a bit more research yourself beforehand, all that cash wouldn't be sitting in Hector's bank account, it would be sitting in yours.

[lawspeed]

IR35 'Tax-Back'

It seems as though you're seeking to 'correct' the declared status of the engagements on the relevant P35's. On your accountant's advice you had been declaring that the engagements were caught by IR35 and were presumably making a 'deemed payment' to the Revenue on that basis.

As SJD correctly points out this can be an extremely long-winded process when IR35 is involved as they will not want to back down when the cash is already in their coffers. Be ready for a long and drawn-out war of correspondence, and I recommend that you let all the discussions take place on paper, try not to be drawn into a face-to-face meeting - let your representatives remain the Revenue's point of contact. Incidentally we could help with this...

One final point is to double check that the accountants did indeed merely make a 'deemed payment' (i.e. you were paid dividends by the company then declared these payments as subject to IR35 with a subsequent deemed payment calculation in the relevant P35's). If they actually structured your accounts such that you were paid ACTUAL salary instead of dividends on the grounds that IR35 applied then you have a very difficult situation. Your company cannot retrospectively adjust the salary payments that it is making to its staff.