Every single IT project manager at a bank ever

[jamesbrown]

So if I carry out working practices assessments every year and dilligently make sure that I comply with the legislation and lose the case but I have no money in company bank to pay anything out, HMRC gets ?

Correct but, for the same reason, you are extremely unlikely to lose the case. Those that lose probably also didn't conduct any due diligence, or insufficient (I am not saying the case in the OP fits this category because I haven't looked closely - many cases are just marginal). Look at the history of IR35 cases won and lost (yes, we don't know about cases settled, but HMRC do not have a good public record).

[AtW]

Those that lose probably also didn't conduct any due diligence, or insufficient.

As if HMRC are picking their cases carefully?

[NowPermOutsideUK]

For once a thread in general worth reading!

Does anyone know how long they can go back in time to query IR35? I think NLUK suggested it was six years but is that indeed the case? Can they go back 20 years? I stopped in 2017 contracting after 8 years in the LTD game - I made a fair amoun of money and bought a few properties sitting in the Ltd so there is money to be taken if an investigation comes my way

BTW if they deem you inside then you personaly have to pay the tax as if it was money paid to you as income - The fact the LTD is insolvent makes no difference

[BR14]

25 years for LondonPM types
hth

[jamesbrown]

BTW if they deem you inside then you personaly have to pay the tax as if it was money paid to you as income - The fact the LTD is insolvent makes no difference

Total nonsense.

[OwlHoot]

Total nonsense.

These days if you wind up a company due to insolvency, the administrators receive a bounty for any money recovered. So they have every incentive to claim you can afford to pay back debts such as taxes. It's not like twenty years ago when you could just pack it in and walk away from the debts unscathed to start a new company!

[jamesbrown]

These days if you wind up a company due to insolvency, the administrators receive a bounty for any money recovered. So they have every incentive to claim you can afford to pay back debts such as taxes. It's not like twenty years ago when you could just pack it in and walk away from the debts unscathed to start a new company!

The incentives for an insolvency practitioner are irrelevant if there is no legal basis for them to pierce the corporate veil and there probably isn't, providing the director has acted responsibly and also carried out their fiduciary duties, both of which are likely true in most IR35 cases (where the contractor has received professional advice), since IR35 is, by definition, extremely complex. An insolvency practitioner cannot change the PAYE regulations, which is the legal avenue for transferring a PAYE debt. There was never a situation where you could simply walk away from a debt if you hadn't met your fiduciary duties.

[cannon999]

These days if you wind up a company due to insolvency, the administrators receive a bounty for any money recovered. So they have every incentive to claim you can afford to pay back debts such as taxes. It's not like twenty years ago when you could just pack it in and walk away from the debts unscathed to start a new company!

Do you have any legal precident that can be quoted here? Otherwise this sounds just like a scary story.

[northernladuk]

Does anyone know how long they can go back in time to query IR35? I think NLUK suggested it was six years but is that indeed the case? Can they go back 20 years? I stopped in 2017 contracting after 8 years in the LTD game - I made a fair amoun of money and bought a few properties sitting in the Ltd so there is money to be taken if an investigation comes my way

BTW if they deem you inside then you personaly have to pay the tax as if it was money paid to you as income - The fact the LTD is insolvent makes no difference

Are you forgetting the investigate on a contract by contract basis? They don't look at your whole career or back multiple clients. They find you on a gig they are interested in and will go back from the start of the contract/engagement with that client.

For once a thread in general worth reading!

It was until you posted your usual twaddle