IR35 trigger date

[johnsample]

Hi,

Can an IR35 investigation only be triggered after the end of the first year of trading?

Trying to establish if it's actually worth me getting IR35 insurance cover until next year, as it's only month 2 for me.

Thanks.

[Pondlife]

As I understand it, an IR35 investigation will generally come off the back of an aspect enquiry. i.e. HMRC questioning an aspect of your returns. Therefore your logic that before filling any returns you are unlikely to be investigated would make sense.

Although, if you keep paying any PAYE/NI late you may get a PAYE enquiry earlier I suppose.

You would need to make sure that any future insurance policy doesn't count a PAYE enquiry as an 'ongoing investigation' and therefore not cover you when it goes full blown IR35.

Just my £0.02. I'd get it now anyway as it's a small price to pay for restful nights.

[johnsample]

As I understand it, an IR35 investigation will generally come off the back of an aspect enquiry. i.e. HMRC questioning an aspect of your returns. Therefore your logic that before filling any returns you are unlikely to be investigated would make sense.

Although, if you keep paying any PAYE/NI late you may get a PAYE enquiry earlier I suppose.

You would need to make sure that any future insurance policy doesn't count a PAYE enquiry as an 'ongoing investigation' and therefore not cover you when it goes full blown IR35.

Just my £0.02. I'd get it now anyway as it's a small price to pay for restful nights.

Thank you for the prompt reply!

I am specifically looking at Freelancer Tax protection from QDos:

Product More Info

Do you know if this: "counts a PAYE enquiry as an 'ongoing investigation", as I'm not quite sure what you mean.

Thanks,
Steve

[Pondlife]

Thank you for the prompt reply!

I am specifically looking at Freelancer Tax protection from QDos:

Product More Info

Do you know if this: "counts a PAYE enquiry as an 'ongoing investigation", as I'm not quite sure what you mean.

Thanks,
Steve

I don't know. Why not give them a ring and ask.

By "counts a PAYE enquiry as an 'ongoing investigation" I mean that they might say you are not covered for their IR35 insurance as you were already facing an enquiry from HMRC when you signed up.

[malvolio]

Hi,

Can an IR35 investigation only be triggered after the end of the first year of trading?

Trying to establish if it's actually worth me getting IR35 insurance cover until next year, as it's only month 2 for me.

Thanks.

It comes on the back of a PAYE Compliance Inquiry, which can happen at any time, usually triggered by a cock up in the company paperwork but there are a random sampesl started each week anyway. So join the PCG, get all the cover you need for free plus a hell of lot of useful information.

Or look at it this way; PCG membership is £120 to protect 20% of your gross contract revenue (an average of around £20k...) and five years uncertainty if it all goes wrong. Seriously a no-brainer IMHO

[malvolio]

Um hello?

I don't know. Why not give them a ring and ask.

By "counts a PAYE enquiry as an 'ongoing investigation" I mean that they might say you are not covered for their IR35 insurance as you were already facing an enquiry from HMRC when you signed up.

Same deal as all of them. Nobody's going to pick up the bill if you're already under investigation: kind of negates the idea of insurance, doesn't it... And of course all IR35 cases are PAYE Investigations.

BTW, did you read my earlier post? Blow another £100 and get PCG Plus, then you're covered for any tax investigation., not just IR35-related ones. Plus a shed load of other stuff. Or is that too much like a good idea?