Do you take out IR35 Insurance?

[DirtyDog]

Wow what a great deal it's so cheap, with all these investigations they must be losing money hand over fist, but I guess they just want to look out for their clients.

Or

There are virtually no investigations any more and they make a nice profit from the gullible?

According to evidence to the House of Lords last week, IR35 investigations are on the increase - in the last tax year 256 new IR35 enquiries were opened, with a further 112 investigations in the first six months of 2013/14. 2011/12 had only 59 enquiries, so that's a significant increase.

So either you are right and there are no investigations, or those testifying to the HoL were lying. I know which one I'll go with.

[russell]

According to evidence to the House of Lords last week, IR35 investigations are on the increase - in the last tax year 256 new IR35 enquiries were opened, with a further 112 investigations in the first six months of 2013/14. 2011/12 had only 59 enquiries, so that's a significant increase.

So either you are right and there are no investigations, or those testifying to the HoL were lying. I know which one I'll go with.

I never said there were no investigations I said virtually no investigations, don't misrepresent me please. 122 out a population of millions of ltd companies is virtually no investigations. You are more likely to get hit my lightning.

If people had basic statistic skills they might ignore the fear mongering and save some money.

[malvolio]

I never said there were no investigations I said virtually no investigations, don't misrepresent me please. 122 out a population of millions of ltd companies is virtually no investigations. You are more likely to get hit my lightning.

If people had basic statistic skills they might ignore the fear mongering and save some money.

OK, so it's a 1.2% chance if we assume the worse case scenario from the various numbers being thrown around, dropping to around 0.2% for the more likely numbers. Small but not insignificant


A basic case will cost a minimum £5k, and more likely £15k if it drags on even a little. A full appeal will double that. So even the cheapest case will cost you 42 years of PCG subs, assuming that's all your subs buy you (which it isn't)..


So that's a statistic worth thinking about....

[DirtyDog]

I never said there were no investigations I said virtually no investigations, don't misrepresent me please.

I apologise.

122 out a population of millions of ltd companies is virtually no investigations.

The number of investigations quadrupled in the past year. You said

I very much doubt they started increasing investigations

which is obviously wrong.

If people had basic statistic skills they might ignore the fear mongering and save some money.

If it is solely based on fear mongering, then I'd agree. When the number of investigations have quadrupled over the past year, I'd rather have protection against what might be a low risk which costs a lot of money.

[d000hg]

I never said there were no investigations I said virtually no investigations, don't misrepresent me please. 122 out a population of millions of ltd companies is virtually no investigations. You are more likely to get hit my lightning.

If people had basic statistic skills they might ignore the fear mongering and save some money.

You think there are millions of PSCs? That would suggest at least 10% of the adult population are working in this way.

Lightning strike probability per person per year is about 1:500,000. Someone who likes to criticise others' basic statistics skills would be advised to check they are not out by an order of magnitude or two.

[russell]

OK, so it's a 1.2% chance if we assume the worse case scenario from the various numbers being thrown around, dropping to around 0.2% for the more likely numbers. Small but not insignificant


A basic case will cost a minimum £5k, and more likely £15k if it drags on even a little. A full appeal will double that. So even the cheapest case will cost you 42 years of PCG subs, assuming that's all your subs buy you (which it isn't)..


So that's a statistic worth thinking about....

Of those 122 opened this year probably only a few made it to court. Hire a lawyer then and HMRC will cover your legal fees when you win.

[DirtyDog]

122 out a population of millions of ltd companies is virtually no investigations.

According to the testimony to the HoL, the odds of an IR35 investigation can be as low as 0.1%. That is significantly higher than the odds of being struck by lightening.

Please don't misrepresent statistics.

[DirtyDog]

Of those 122 opened this year probably only a few made it to court. Hire a lawyer then and HMRC will cover your legal fees when you win.

Have you got any evidence to show that HMRC will pay for the costs of an investigation if they close it down? Do they pay your investigation costs if it goes to court and the lose? Do they pay your investigation costs if after a number of weeks of investigation and expense they just close the investigation? Do they pay for your time or is it just the legal fees?

[russell]

According to the testimony to the HoL, the odds of an IR35 investigation can be as low as 0.1%. That is significantly higher than the odds of being struck by lightening.

Please don't misrepresent statistics.

Yeah but that of an investigation most will fizzle out before it goes to court, it's more like 0.001%.

[SueEllen]

Yeah but that of an investigation most will fizzle out before it goes to court, it's more like 0.001%.

So who pays for the legal fees?

Most civil cases never go to court but they cost hundreds and thousands in legal fees.