Reply to: What are the chances of actually being investigated?

[SueEllen]

But for a company with zero/ few expenses, I'm not sure it would be worthwhile with all the extra legwork involved in a limited company rather than umbrella company? I may be wrong though.

It's p*ss easy if you have no expense then.

[radish2008]

60,000 to 1

[goldilockz]

Nope.

You get a 5% allowance for expenses being within IR35 under a limited company as long as you don't work for the public sector.

But for a company with zero/ few expenses, I'm not sure it would be worthwhile with all the extra legwork involved in a limited company rather than umbrella company? I may be wrong though.

[SueEllen]

Yes, but also operating inside IR35, I might as well go with an umbrella company surely?

Nope.

You get a 5% allowance for expenses being within IR35 under a limited company as long as you don't work for the public sector.

[goldilockz]

You could always just be inside IR35. Nothing to worry about then.

Yes, but also operating inside IR35, I might as well go with an umbrella company surely?

[VectraMan]

Thanks to you all for the information. With regards to getting QDOS involved, would you recommend paying for tax enquiry insurance:

https://www.qdoscontractor.com/ir35/ir35-insurance

I want to take all the necessary precautions going into this limited company business!

You could always just be inside IR35. Nothing to worry about then.

[goldilockz]

So join IPSE and take out their Plus membership.

Great, thank you. I'll look into this.

[goldilockz]

How long have you been a limited company? If it's over a year so you have submitted company accounts then yes regardless.

If it is under as long as you are diligent in doing your VAT then you should be OK until you have submitted company accounts.

You should check out Hiscox and IPSE as well as QDOS. You should also ask your accountant if they have any cover that would cover you.

Thanks SueEllen.

I have literally been a limited company for one week! That's why I'm trying to find the best option and cover my back as much as possible. I could do without the sleepless nights!

[malvolio]

Thanks to you all for the information. With regards to getting QDOS involved, would you recommend paying for tax enquiry insurance:

https://www.qdoscontractor.com/ir35/ir35-insurance

I want to take all the necessary precautions going into this limited company business!

So join IPSE and take out their Plus membership.

[SueEllen]

Thanks to you all for the information. With regards to getting QDOS involved, would you recommend paying for tax enquiry insurance:

https://www.qdoscontractor.com/ir35/ir35-insurance

I want to take all the necessary precautions going into this limited company business!

How long have you been a limited company? If it's over a year so you have submitted company accounts then yes regardless.

If it is under as long as you are diligent in doing your VAT then you should be OK until you have submitted company accounts.

You should check out Hiscox and IPSE as well as QDOS. You should also ask your accountant if they have any cover that would cover you.

[ChimpMaster]

Which might be true but consider the fall out of being one of the few.

If the information in the thread was to continue to take it seriously and spend a bit of time and a little bit of money on proper diligence then yes, that is still very valid.

Exactly, and well worth the couple of hundred £ to get yourself covered. Personally I have IPSE+ membership but for no other reason that the insurance.

[goldilockz]

Your chances of investigation are low but what counts is if fate picks on you then you get QDOS or whoever engaged as soon as the Revenue come sniffing anywhere near you. They defend you vigorously and in most cases the Revenue slip up or more likely give up. It's not pleasant and it can drag out for a long time but they do seem to be very good at frustrating the Revenue - ruthlessly exploiting all their weaknesses.

I suspect the Revenue make their money, not by catching people but rather by the deterrent effect of somewhat token actions.

Thanks to you all for the information. With regards to getting QDOS involved, would you recommend paying for tax enquiry insurance:

https://www.qdoscontractor.com/ir35/ir35-insurance

I want to take all the necessary precautions going into this limited company business!

[northernladuk]

The chances of being investigated are still small and it looks like HMRC won't be pursuing individual contractors in any great numbers as they've switched their focus to agencies and clients making them enforce IR35 at least in the public sector. We'll need to see if they decide to extend this clampdown into the private sector, but that won't be for at least a year, and they maybe satisfied simply having clamped down on the public sector.

Which might be true but consider the fall out of being one of the few.

If the information in the thread was to continue to take it seriously and spend a bit of time and a little bit of money on proper diligence then yes, that is still very valid.

[Cirrus]

would they likely avoid investigation?

Your chances of investigation are low but what counts is if fate picks on you then you get QDOS or whoever engaged as soon as the Revenue come sniffing anywhere near you. They defend you vigorously and in most cases the Revenue slip up or more likely give up. It's not pleasant and it can drag out for a long time but they do seem to be very good at frustrating the Revenue - ruthlessly exploiting all their weaknesses.

I suspect the Revenue make their money, not by catching people but rather by the deterrent effect of somewhat token actions.

[SueEllen]

The chances of being investigated are still small and it looks like HMRC won't be pursuing individual contractors in any great numbers as they've switched their focus to agencies and clients making them enforce IR35 at least in the public sector. We'll need to see if they decide to extend this clampdown into the private sector, but that won't be for at least a year, and they maybe satisfied simply having clamped down on the public sector.

It depends if more companies are taken to court to argue people, their workers, are employees.

I suspect at some point someone will take a pop at a government department.