IR35 penalty calculation

[soyoh30298]

Title

[northernladuk]

I haven't a clue what all that is supposed to mean. Looking at your history and the number of IR35 posts you've made I think I should be asking you this not the other way around.

Isn't this more or less the same question in the old thread below that you resurrected in June?
https://forums.contractoruk.com/acco...35-bill-2.html

[WTFH]

Have you got a tax adviser or are you doing this all yourself?
How many years does this cover?
Have they given you a breakdown of figures (including interest)?

[soyoh30298]

Nevermind

[northernladuk]

So I was reading the new offset consultation:
https://www.gov.uk/government/consul...non-compliance

Thus, it doesn't even matter that you paid 90% tax, the fact that penalty is applied to the full amount is a huge leverage.
In my example above, if you get a 50% penalty for deliberate careleness etc. Even if you owe only 10k tax after offset, that'll mean a penalty of 100k instead of 5k. That's huge, and I wonder why it's not discussed much

Because most of us focus on staying clearly outside IR35 and work on prevention rather than management of the fall out. Knowing a lot about IR35 and gathering evidence, keeping your nose very clean and leaving/changing things when it becomes a little grey and all the above becomes fairly irrelevant. You appear completely fixed on the penalties but don't see any discussions about how you should be managing yourself first. Maybe you already know so fair enough but we've seen plenty of people talking about getting caught that haven't put the effort in to avoid that first.

[soyoh30298]

Whatever

[WTFH]

It doesn't matter. It's about risk awareness. Whatever you do, it's no secret that IR35 is such a grey area that HMRC can come knocking and you always fall short (just see recent case or Kaye Adams). And people thinking they can put £1k a month for a rainy day is astonishing.

OK, can you tell us, is your first post because you are seeking advice, or is there some other reason for it, because it's more like you're speaking in riddles.

[soyoh30298]

OK, can you tell us, is your first post because you are seeking advice, or is there some other reason for it, because it's more like you're speaking in riddles.

Just a warning for everyone. I was very surprised.