My contract has just failed the IR35 test

[malvolio]

Reality that matters? Really?

So if a contract is IR35 unfriendly HMRC will say "Oh, it seems from the contract that you are caught but in the interests of fairness we won't make a decision until we have checked further"

Oink, oink, flap, flap.

Why would Hector even see your contract? Nobody (at least, nobody sane) is going to send him a copy, are they?

Anyway you don't get investigated for IR35. You get investigated for apparent irregularities or inconsistencies in your personal tax returns or corporate paperwork including (reputedly) VAT returns. The move to IR35 investigations starts from there. So keep your paperwork straight and your payment schedule fairly even and you reduce the risks: Hector also runs some random inquirires each week but there are 4.5 million freelance workers out there...

That's why PCG insurance against IR35 kicks in fairly late in the process and why PCG Plus covers all aspect inquiries. The thinking is that by managing the original inquiry professionally you never get to a potetnial IR35 case.

As with everything it's a risk assessment.

[dx4100]

I imagine you paid for the review as you wanted a independent assessment on your IR35 status. You failed that review. You now either operate as IR35 caught, change the wording of the contract and re-review, or operate outside of IR35 regardless (which makes me think why did you waste your money on a review if you was just going to ignore the outcome).

Your chances of a investigation are as likely as any of us. This won't change a thing.