IR35, what if....

[mudskipper]

Caunce O'Hara seem to be offering me something?
I've not looked into it as they emailed me a few days after I'd renewed IPSE.

I looked at that - it was a lot cheaper, but there was no real detail about the offering on their website.

In the end I renewed ipse - someone mentioned being represented by "people who know what they're doing" and I'm happy that, if push comes to shove, I'll get that from ipse.

[Zero Liability]

This URL explains the penalties - looks like the 100% ones are the worst case scenario.

[Batcher]

This URL explains the penalties - looks like the 100% ones are the worst case scenario.

Just checked the payment slips. I didn't get any penalties so had PAYE, Class 1 NICS & Interest payments but I had 4 payment slips, one for each year they deemed me inside.

The membership fee for PCG was the best money I ever spent

[suityou01]

Then he should have asked this question in the Accounting/Legal professional forum, where a certain restraint is encouraged.

Mods can't be expected to be around to move every post into the right forum.

Weren't you this grouchy last month?

[Contreras]

IR35 is personal taxation, so you are liable.

If you want your company to be liable for the tax just keep money there.

Someone did point out rightly that there is nothing to stop you keeping the money in the company, of course you pay corporation tax and then taking it out later.

Sorry but that is completely AAF.

IR35 is a company liability (even though it's calculated on the tax the individual would have paid).

If anything it's a reason not to keep the warchest in the company, glistening under the greedy gaze of Hector.

Dissolve the company and any liability cannot be pursued (fraud/negligence being notable exceptions to this). You need HMRC approval to do that of course.

[Project Monkey]

Hi, theoritical situation:

I'm trading as a ltd company for 10 years and I get investigated and found to be "caught" by IR35.

I am taken to court and told to pay a huge tax bill, interest, and a penalty.

There is no chance of me being able to pay this. Next comes insolvency? So they would cease any monies and/or assets the company has and close it down. My house and personal finances would be ok though? No ones going to prison because they can't pay or anything. Am I right in assuming this ?

Thanks.

No need for all this! You're a contractor, so just pay the bill and move on.

[Ruprect]

Just checked the payment slips. I didn't get any penalties so had PAYE, Class 1 NICS & Interest payments but I had 4 payment slips, one for each year they deemed me inside.

The membership fee for PCG was the best money I ever spent

Hey Batcher what happened then? Investigated, PCG defended but IR35 caught and still liable? Was the comment about the PCG membership tongue in cheek?

[Batcher]

Hey Batcher what happened then? Investigated, PCG defended but IR35 caught and still liable? Was the comment about the PCG membership tongue in cheek?

No, it wasn't tongue in cheek

Investigated for 4 years, QDOS defended me as I had IR35 insurance with them, found guilty and ordered to pay £52k, QDOS wouldn't take it to commisioners unless I paid £7k, was a member of PCG so contacted them, they told me what to tell QDOS to tell HMRC, HMRC eventually dropped the case when prodded as we hadn't heard from them for 6 months.

[Pondlife]

No, it wasn't tongue in cheek

Investigated for 4 years, QDOS defended me as I had IR35 insurance with them, found guilty and ordered to pay £52k, QDOS wouldn't take it to commisioners unless I paid £7k, was a member of PCG so contacted them, they told me what to tell QDOS to tell HMRC, HMRC eventually dropped the case when prodded as we hadn't heard from them for 6 months.

**** YES!