Expenses - I don't believe this

[escapeUK]

I started out using an umbrella, worse mistake ever. Stop. Start your own Ltd company, its easy, you decided what you do and not have some spotty minimum wage teenager tell you what you can and cant do. Best of all it saves you £1000s in NI.

[LisaContractorUmbrella]

I started out using an umbrella, worse mistake ever. Stop. Start your own Ltd company, its easy, you decided what you do and not have some spotty minimum wage teenager tell you what you can and cant do. Best of all it saves you £1000s in NI.

If you are outside IR35

[escapeUK]

If you are outside IR35

Which of course everyone is, and if they arent move to another contract.

[LisaContractorUmbrella]

Which of course everyone is, and if they arent move to another contract.

Everyone is?

[escapeUK]

Everyone is?

How do you interpret the stats from PCG of HMRCs lack of success in proving people are inside?

[LisaContractorUmbrella]

What are PCG stats based on?

The number of investigations undertaken that have resulted in a settlement with HMR&C? The number of investigations undertaken? The number of investigations won in court?

[captainham]

How do you interpret the stats from PCG of HMRCs lack of success in proving people are inside?

From a previous thread involving Qdos, they won't progress your case (through their insurance) if you are blatantly inside IR35, as it would be pointless to do so. I imagine PCG/Abbeytax work in a similar way, as to not do so would be madness.

So they only take forward genuine cases where they believe you are outside, which is normally the case as the stats show for both them and PCG.

To state everyone is outside IR35 based on those stats alone is a bit of a narrow view, as there is the bigger picture to see as I describe above.

[northernladuk]

How do you interpret the stats from PCG of HMRCs lack of success in proving people are inside?

But aren't the PCG stats based on figures they have dealt with? Anyone that has taken the time to look in to PCG membership will at least know the basics of IR35. How do we find out how many of the 'contractors' that choose to ignore IR35 have been investigated and have just rolled over because they don't know any better? Do these people retrospectively come to PCG and are included in the numbers?

[escapeUK]

Well here are the stats:-

IR35 full yield and investigation figures revealed | PCG

PCG believe there to be 1.4 millions freelancers in the UK. Between 2006 and 2011 only 322 were investigated, these are reviews opened, not challenged by PCG.

So 322 out of 1.4 million, which generated very little tax as most were lost by HMRC and proved to be outside.

So which bit of everyone dont you agree with. If I were you Lisa, I would focus on providing the best service as an umbrella (which perhaps you do as my experience was with Parasol) rather than trying to instil the fear of IR35.

But aren't the PCG stats based on figures they have dealt with? ?

No. The stats are total cases opened and tax generated.

[moggy]

Well here are the stats:-

IR35 full yield and investigation figures revealed | PCG

PCG believe there to be 1.4 millions freelancers in the UK. Between 2006 and 2011 only 322 were investigated, these are reviews opened, not challenged by PCG.

So 322 out of 1.4 million, which generated very little tax as most were lost by HMRC and proved to be outside.

So which bit of everyone dont you agree with. If I were you Lisa, I would focus on providing the best service as an umbrella (which perhaps you do as my experience was with Parasol) rather than trying to instil the fear of IR35.



No. The stats are total cases opened and tax generated.

Your points don't prove everyone is outside IR35, just that HMRC have hardly investigated anyone.