HMRC and IR35

[Belle]

A couple of questions (and if the Search facility worked, I may have found the answers in a different post – so apologies in advance). How does the HMRC decide which contractors to investigate for IR35 status? And as contracts are confidential, how are they able to view details of a contract to decide which contractors to pursue?

[malvolio]

A couple of questions (and if the Search facility worked, I may have found the answers in a different post – so apologies in advance). How does the HMRC decide which contractors to investigate for IR35 status? And as contracts are confidential, how are they able to view details of a contract to decide which contractors to pursue?

They fall out of a more general invesigation, either as a result of a concern over some entry on your paperwork or as one of the 10 or so random checks they kick off every week. OR, as has happened to a friend of mine last week, out of a VAT enquiry into travel expenses (just how they got from that to IR35 is something of a mystery).

They have the power to see any contract they want to; contracts are only commercially confidential anyway, they're not actually classified, but HMRC have a legal right of access.

[TheFaQQer]

A couple of questions (and if the Search facility worked, I may have found the answers in a different post – so apologies in advance). How does the HMRC decide which contractors to investigate for IR35 status? And as contracts are confidential, how are they able to view details of a contract to decide which contractors to pursue?

Use google - just add site:forums.contractoruk.com at the end of the search criteria, and it only searches the site.

You can go further and search specific sections of the site if you put more of the URL in.

[Belle]

Use google - just add site:forums.contractoruk.com at the end of the search criteria, and it only searches the site.

You can go further and search specific sections of the site if you put more of the URL in.

Sweet, thanks. I knew I had seen that advice somewhere but couldn't search for it

[Wanderer]

A couple of questions (and if the Search facility worked, I may have found the answers in a different post – so apologies in advance). How does the HMRC decide which contractors to investigate for IR35 status?

Now that's the million dollar question! Those who know, don't say and those who say, don't know. There seems to be a concensus that if you file your paperwork on time, don't mess things up and stay off their radar then they are less likely to bother you. On the other hand, as malvolio says, they mostly likely choose some at random too.

And as contracts are confidential, how are they able to view details of a contract to decide which contractors to pursue?

As far as I know, they can't see your contract as part of a random trawl. They can only see it if they choose to investigate you or the agency or the client and require that it be disclosed.

Perhaps they could even target people if they know that a particular agency uses a broadly IR35 non-compliant contract. An easy win for HMRC with a list of targets already set out. It would destroy the agencies business utterly once the word got out though..

[Funkywood]

A couple of questions (and if the Search facility worked, I may have found the answers in a different post – so apologies in advance). How does the HMRC decide which contractors to investigate for IR35 status? And as contracts are confidential, how are they able to view details of a contract to decide which contractors to pursue?

Use google - just add site:forums.contractoruk.com at the end of the search criteria, and it only searches the site.

How they work out the company names of forum users I'm not in a position to say.

[SallyPlanIT]

They can also narrow down the search whereby the company answered yes to question 6 on the P35 that declares that you are a Personal Service Company.