IR35 exposure & mitigation

[malvolio]

"It's slightly worrying you've been a contractor for some time and still have no idea how it works." I think that's a bit harsh, I work in a large team most of whom are contractors.

No it's not. You apparently don't understand IR35 and you have an incomplete knowledge of the tax landscape surrounding your business. When I say "Join the PCG and read the guides", it's so you can find out how much you don't know: you won't do that asking questions on here one at a time. It may be harsh advice, and I tend not to pretty things up too much, but it is solid advice. Don't ask for help and then complain you don't like the answer.

You've already discovered a lot of contractors think it's all a game with the objective of getting away with as much as you can. It isn't, it's deadly serious. Your guy with the airline tickets is committing tax evasion, pure and simple, and that carries a ten year jail term, but that's his problem.

[MPwannadecentincome]

Some are using all the tricks to get money out of their company e.g. charging non-business expenses through their business and in at least one case I know of, buying 1st class fights to spurious seminars in the States, cashing in the ticket and buying an economy to fund their family holiday.

Isn't this the type of behaviour by the minority that gives all contractors a bad name and puts public pressure on HMRC to find more ways to tax us?

[BjornMorg]

Isn't this the type of behaviour by the minority that gives all contractors a bad name and puts public pressure on HMRC to find more ways to tax us?

Have to agree...

[Craig at Nixon Williams]

Paying a higher salary or paying large amounts into a pension won’t mitigate the risk of an enquiry being started, what it will reduce is the amount of extra tax that can be collected if HMRC can successfully prove that IR35 should apply.

If you have had your contracts and working practices reviewed by a professional then you should have some assurance that your arrangement would stand up to HMRC scrutiny – if you are still uncomfortable then there are insurance products around that can cover the actual tax due in the event that you got a tax bill following a status enquiry.

Hope this helps!
Craig