IR35 time limit

[xara]

Have heard the idea that a 6 year time limit generally applies to possible HMRC investigations into IR35 compliance; but what date does this refer to? End of relevant contract? Company tax return? Or personal tax return, I guess is the likeliest one...

Also presumably if they smell blood the 6 year thing becomes irrelevant.

[Sockpuppet]

HMRC have 6 years to investigate you, which would refer to personal tax return. It's counted from the end of Jan the following year I believe.

Or they can go back 20 years if they think you've been really naughty.

[xara]

Or they can go back 20 years if they think you've been really naughty.

On what basis might they come to that conclusion? No naughtiness, just the usual fog surrounding ir35.

[malvolio]

On what basis might they come to that conclusion? No naughtiness, just the usual fog surrounding ir35.

Investigations start from a query on that year's SAR, so in effect the end of the tax year following submission of the SAR. If they discover a discrepancy - which is how they treat IR35 - they can go back over the last six years' returns to look for the same error (and, of course, they may then find other errors as a result) and then correct things as necessary. If they suspect deliberate mis-stating of income, they can go back as far as they fancy, but in reality 20 years is probably sufficient.

That's not just IR35, it's anything reported on the SAR. However, it does emphasise the importance of being accurate, honest and timely with your returns, so they don't have an excuse to go looking.

[ChimpMaster]

Get insurance to cover the possibility of being investigated anyway. At ~£250 a year it's well worth the cost for peace of mind.

[BolshieBastard]

Get insurance to cover the possibility of being investigated anyway. At ~£250 a year it's well worth the cost for peace of mind.

Except you're then wondering if the insurance really will cover you especially if its QDOS' virtually open ended cover!

[MyUserName]

Except you're then wondering if the insurance really will cover you especially if its QDOS' virtually open ended cover!

Has anyone ever made a claim?

[quackhandle]

But, if your a member of PCG, at the first sniff of an investigation you give them a call.

qh

[Acme Thunderer]

When to make the call

Sorry to hijack this but at what point to call PCG.

My situation is that HMRC have queried my SAR on the grounds that the P11D benefits that were put on my return where less than that reported for my old permie job.

The return is correct - old perm company re-issued my P11D but didn't send an update to HMRC (or HMRC lost it). Anyway my accountant has a copy of the correct P11D and has sent it to HMRC, hopefully end of story.....but as Mal pointed out HMRC now have an excuse to come looking.

Should I get PCG involved now or wait to see if HMRC are happy with the updated P11D?

Thanks

[malvolio]

Sorry to hijack this but at what point to call PCG.

My situation is that HMRC have queried my SAR on the grounds that the P11D benefits that were put on my return where less than that reported for my old permie job.

The return is correct - old perm company re-issued my P11D but didn't send an update to HMRC (or HMRC lost it). Anyway my accountant has a copy of the correct P11D and has sent it to HMRC, hopefully end of story.....but as Mal pointed out HMRC now have an excuse to come looking.

Should I get PCG involved now or wait to see if HMRC are happy with the updated P11D?

Thanks

Call the office on Monday. Don't think you've got a problem, but it does no harm to be ready in case you have. PCG are not particuarly fussy about process detail, the whole idea is to support the members not make money out of them.

And why not ask that question on the PCG fora: most likely you'd have had have an answer from one of the team by now.