Just to add to the doom, two big IR35 losses

[SallyAnne]

http://forums.contractoruk.com/accou...-99-000-a.html

Missed the ball on that one prawn old boy

jesus - that took all afternoon to get through!!

I've earned £250 just understanding that it's probably going to get taken away from me at some point

[Bumfluff]

If HMRC are reading this thread a msg for you "you're c*nts and you know you are, your c*nts and you know you are, with little d*cks, if you ever ask me to fix your computer I will putting your ******* head through it"

[DimPrawn]

If HMRC are reading this thread a msg for you "your daffodils and you know you are, your daffodils and you know you are, will little d*cks"

You're

[SallyAnne]

More proof that when it comes to dealing with the HMRC use a professional as an [/FONT]intermediary.

I couldn't agree more.

During my investigation, when I conversed with HMRC myself, they asked for £20k!!!

When SJD got involved, they dropped the £20k and closed the investigation.

God bless SJD

[Denny]

IR35 terrifies me every day. Sometimes I just want to pack it all in.

Can anyone help me with this thought. When I sit down at coffee break and discus my project with other contractors and I implement their ideas, or they send me small bits of code which I use am I actualy using a sub?
When I get the wife to proof read a report or enter values into a spread sheet would that amount to the same thing?
If there is a requirement to payfor a sub then maybe we should all try and farm out some of our work to temp agencies or pay our mates to do a bit for us. I would also suggest doing it without our clients knowledge (where legal) to defacto get around control questions too.

First - No.
Second - No, unless you paid her, but be aware of the income shifting issues you are going to pay her divis.
Third - Good idea. If you were a 'real business' you'd be doing that anyway. Isn't that what builders do or your accountancy firm? But you'd have to scrutinise the contract on security isses arising from divulging the client's work to your sub in case you're in breach of contract. It's best to draw up your own confidentiality agreement. One thing to note. If the Revenue start investigating you might need to demonstrate that there was some economic benefit attached to using a sub otherwise they might conclude the arrangement was a sham in the light of the recent losses. After all, you wouldn't pay someone else to do something you'd be paid for if you weren't making money elsewhere or were otherwise legitimately absent on sick or holiday, would you? I suppose you could say you were marketing the business though, so that might be a good cover if it involved doing some hands on legwork that left you insufficient time to do the work. But then the questions might be around timing - why then? What was the hurry? Couldn't the marketing have waited until the gig was up? Take advice.

This post is on the wrong site.

[Denny]

Flippin' 'eck!! He owes £99k after 3 years on £40 per hour??

That probably includes investigation costs, surcharge penalties and interest, which are going to be hefty on three years of unpaid tax based on a high turnover. So that figure isn't that surprising.

[Churchill]

This post is on the wrong site.

So are you.

Now, no sugar in that coffee!

[Chantho]

That probably includes investigation costs, surcharge penalties and interest, which are going to be hefty on three years of unpaid tax based on a high turnover. So that figure isn't that surprising.

Well, 40 gbp / hour for 3 years is circa 200k gbp (depends on how many weeks worked per year obviously). If this were salary 99k is about the amount an employee and his / her employer would pay in PAYE, Nat Ins. (employee) and Nat Ins. (employer). So a deemed employee who has paid nothing so far for the 3 year period could be due for this sort of tax demand under IR35.

[Bumfluff]

That probably includes investigation costs, surcharge penalties and interest, which are going to be hefty on three years of unpaid tax based on a high turnover. So that figure isn't that surprising.

Did he have to pay the HRMC costs then ?

[BlasterBates]

Whoops ....looks like the flood gates will open now. Seems to me that the IR have finally found the chink in the armour.