HMRC Investigation - update.

[Captain Dispensable]

11k seams a bit steep for just one year of expenses.

It's easy to reach if you're claiming accomodation, mileage, Personal Incidental Expenses. My annual expenses are usually around that or slightly higher.

Had an investigation into expenses about 5 years ago. Fortunately they agreed they were legit and didn't choose to investigate anything else or take it any further. May have been before IR35 though so not looking forward to any future investigations if they're being so unreasonable.

How many years can they decide to go back and investigate? Is it 6? There was something they had to initiate an investigation within 12 months of you submitting it, may have been Self Assessment? My memory is so crap these days.

It's times like this that I'd hope to be able to do a moonlight flit to a safe haven, having caned all lines of credit into the red beforehand of course. Realistically all we can do is get professional advice, insurance that's worth the paper it's written on, and a large tub of vaseline for the shafting.

[andy]

has anyone used ir35 insurance advertised on the CUK main page
http://www.contractoruk.com/insuranc..._expenses.html
It seems reasonable for £75/annum

while qdos offers IR35 Insurance From £325.00

how do they differ?

[Diestl]

Thats why I would avoid long term contracts (> 6 months) as they seem like a good target for hector, if I was on long term I would get full IR35 insurance that pays out the tax (not just the costs).

[scooterscot]

Thats why I would avoid long term contracts (> 6 months) as they seem like a good target for hector, if I was on long term I would get full IR35 insurance that pays out the tax (not just the costs).

Standard PCG membership does that, doesn't it?

[rootsnall]

Thats why I would avoid long term contracts (> 6 months) as they seem like a good target for hector, if I was on long term I would get full IR35 insurance that pays out the tax (not just the costs).

Have any insurance schemes ever paid out any tax ? I'm very dubious.

I have taken the short contracts only approach to limit the target but to be honest they don't know anything about your contracts ( their length and t & c's ) when they decide to investigate you. I'm not sure at what stage they actually get to see your contract !? I presume in a full investigation.

I'm thinking of upping my salary as my latest strategy to try and go for one third PAYE, one third pension, one third divis, theory is they are just chasing you for NI on a third of your gross then.

[andy]

Thats why I would avoid long term contracts (> 6 months) as they seem like a good target for hector, if I was on long term I would get full IR35 insurance that pays out the tax (not just the costs).

Its a matter of chance only. I have seens lots of contractors who are working for 5-6 years on the same site and they are never investigated.

[Troll]

while qdos offers IR35 Insurance From £325.00

how do they differ?

Without wanting to sound like a Qdos advert http://www.qdosconsulting.com/qdosma...e=yytwz6mwvnfg

Annual Qdos Freelancer Tax Protection insurance - total fee protection £99.00 Qdos Freelancer Tax Protection
Freelancer Tax Protection includes:

1. Qdos representation and attendance in the event of a PAYE compliance review

2. Insurance of fees up to £50,000 incurred representing you in defence of:

An IR35 dispute
A PAYE/NIC dispute
A VAT dispute
A HM Revenue & Customs aspect enquiry
A HM Revenue & Customs full enquiry
A Section 660A dispute
3. Includes weak cases to Commissioners’ Hearing if required

[wendigo100]

If they're saying you were a permie then are they going to refund the employers national insurance you've paid. Plus you'll be getting the pension contributions and holidays etc. They can't have it both ways....can they?

Yes they can.

If this leads to an "IR35 caught", you won't you get any backdated benefits like pensions or holidays from your "permie employer".

And not only won't they refund the NICs, but they will demand a whole lot more, including that of your "permie employers".

How's that for fairness?

[DS23]

>Got a letter on Saturday...well it was more of a bill really than a letter.

>They want £11k off me.

a pisser for sure.

when do they want it and have you got it?

[SallyAnne]

>Got a letter on Saturday...well it was more of a bill really than a letter.

>They want £11k off me.

a pisser for sure.

when do they want it and have you got it?

They said I had to get back to them by the end of June after consulting with my accountants, with either the money, or more detailed reasoning why I shoudln't have to pay.

Yeah I have it, but I'm clinging onto it for dear life!!