IR35 hypothetical - Would the end company have to co-operate?

[Fred Bloggs]

It's really simple. HMRC say "you're caught" and issue an assessment accordingly. You then have to disprove it. Potentially tricky if there is no cooperation through the chain.

That's what I pay QDOS for, though I will be very happy if I never have to engage them.

[VectraMan]

I had a client who told me the contractor I'd replaced was investigated, and they just kept putting off HMRC and saying they were too busy, and "in the end they went away".

That was a few years ago though.

I guess having the client on your side makes an enormous difference. What would worry me is that this sort of thing would get palmed off onto an HR numptie who didn't even know you and probably doesn't understand what a contractor is anyway.

[Fred Bloggs]

I had a client who told me the contractor I'd replaced was investigated, and they just kept putting off HMRC and saying they were too busy, and "in the end they went away".

That was a few years ago though.

I guess having the client on your side makes an enormous difference. What would worry me is that this sort of thing would get palmed off onto an HR numptie who didn't even know you and probably doesn't understand what a contractor is anyway.

Correct, my fears in a nutshell. Hopefully QDOS would have the skill to completely discredit that sort of evidence on my behalf but that is my biggest fear (basically, a numpty answering HMRC's leading questions).

[Qdos Contractor]

Yeah, that's what HMRC will be aiming for. They'll send over a ridiculously long, cleverly worded questionnaire and will hope that it will land on someone from HR's desk. They might answer 90 of the 100 questions 'correctly', but one false move and the Revenue will pounce on it. Once it's signed by the client it would be very difficult to go back on.

[Fred Bloggs]

Yeah, that's what HMRC will be aiming for. They'll send over a ridiculously long, cleverly worded questionnaire and will hope that it will land on someone from HR's desk. They might answer 90 of the 100 questions 'correctly', but one false move and the Revenue will pounce on it. Once it's signed by the client it would be very difficult to go back on.

But......... I'll be relying on you guys to demonstrate for me that the testimony of a random personnel person at a previous client co who never met me, never knew what I did nor how it did it etc... would be as good as worthless.

[Qdos Contractor]

But......... I'll be relying on you guys to demonstrate for me that the testimony of a random personnel person at a previous client co who never met me, never knew what I did nor how it did it etc... would be as good as worthless.

Well we'd certainly do our best (and have done so in the past). If we couldn't, that's where the TLC cover comes in of course. Unhelpful end clients are probably the biggest risk in an IR35 enquiry and it often gives us a headache.

[Fred Bloggs]

Well we'd certainly do our best (and have done so in the past). If we couldn't, that's where the TLC cover comes in of course. Unhelpful end clients are probably the biggest risk in an IR35 enquiry and it often gives us a headache.

Thanks, that is how I see it too.