I need an accountant

[4Contractors]

Hi Lucifer

I hope we are not doing that but if you quote out of context it's difficult to see the relevance. You may be surprised to know that the vast majority of applications on our website are for umbrella companies
We both have limited companies run outside of IR35 but it is only fair to present a balanced argument to new contractors who are thoroughly confused by all this IR35 stuff. Come to think of it I don't know anyone who is actually 100% confident with it - do you ?

No wish to fight but quite capable of self defence if necessary

Rhino

[Lucifer Box]

I think you do need to rethink your wording. The first link on your site is 'Accountant' and underneath that one for 'New Contractors' with the pre-amble "Read this information carefully". After the stuff about what a limited company is, you get the 'Expenses' section which starts off with the "Under new regulations (commonly known as IR35) that came into force from 6th April 2000 there are restrictions on what expenses etc can be claimed..." blurb.

Even starting off with "In certain circumstances.." would be a big help to the new boys.

[4Contractors]

Lucifer

The information you are quoting is an extract from the accountants information pack which we are obliged to publish. As contractors our advice to new contractors is completely different and less responsible than that from a far more conservative accountant.

On a personal level, we have always operated outside of IR35 and fought against its injustice but it is up to individuals to collate information and make their own decisions on the issue.

If you advised someone to operate outside of IR35 and they were subsequently investigated and presented with a large tax bill, how would you feel and how would you back up your original comments. It's a bit like lending out a motorcycle crash helmet really - not the done thing !

I know this is tittle tattle amongst us but we take these matters very seriously as some very old posts on the old forum show.

[OwlHoot]

If you are caught by IR35 those are the only legitimate expenses that can be claimed, apart from the 5% of turnover, of course.

Is that 5% an absolute limit, regardless of legit expenses.

[OwlHoot]

I hope we are not doing that but if you quote out of context it's difficult to see the relevance. You may be surprised to know that the vast majority of applications on our website are for umbrella companies

If for some reason you suspected that someone who claimed to be outside IR35 might be caught, or maybe that client admitted as much, would you as accountants feel obliged to use the new reporting system and shop them? Or is this an inconceivable situation?

[Darren@UptonAccountants]

Ir35

If for some reason you suspected that someone who claimed to be outside IR35 might be caught, or maybe that client admitted as much, would you as accountants feel obliged to use the new reporting system and shop them? Or is this an inconceivable situation?

In the above, we would advise the client what they should be doing, it would then be up to them whether to act on this advice.

[4Contractors]

If for some reason you suspected that someone who claimed to be outside IR35 might be caught, or maybe that client admitted as much, would you as accountants feel obliged to use the new reporting system and shop them? Or is this an inconceivable situation?

The accountants first loyalty should be to his clients and many accountants are very conservative in their advice in order to protect their clients. Most contractor accountants try to make contractors aware of the possible impact of IR35 but the final decision as to how the limited company is run is the clients decision. Clients are also untimately responsible for their signed off accounts.

The only collusion with the taxman I have come across was back in 1998 when my old accountant JSA reached a global settlement with the Inland Revenue over legitimate but apparently disallowed expenses claimed for travel, accom, etc claimed before April 1998. Naturally, JSA also included a fee for their services on top of that. A lot of JSA clients, including me, were forced to cough up over £800 - I never heard of anyone else having to pay this money - another very good reason to steer well clear of JSA !!