Reply to: Real Risk of IR35 HMRC Investigation

[cojak]

in the long run, if it looks to good to be true, it probably is...

Looking at the overall proportion of GDP in government expenditure, which AFAIR is around mid 40s, any effective marginal tax ate less than that is a win. Anything under 20%? ust to good to be true.

HMRC Tax Avoidance advice in case anyone is tempted.

HM Revenue & Customs: Tempted by Tax Avoidance?

[Jessica@WhiteFieldTax]

in the long run, if it looks to good to be true, it probably is...

Looking at the overall proportion of GDP in government expenditure, which AFAIR is around mid 40s, any effective marginal tax rate less than that is a win. Anything under 20%? Just to good to be true.

[cojak]

... or whatever the current flavour is

The latest flavour is 'Corporate (or Corporation) Tax Planning'.

[GazCol]

And how does HMRC know that you have had your contracts reviewed, have insurance, PCG membership, etc?

I imagine there are much easier ways to detect likely targets from a simple DB query looking for warning signs.

The initial contact prior to investigation being declared. I've taken it for granted that the targets would be found using, as you say, a straight-forward DB query. Following that I wouldn't be surprised if the decision to then investigate or not is made following that initial contact.

[cojak]

Thank goodness UKContractorAccountant can offer

✓ Tax-efficient Structures.
Retain up to 90% of your contract income with our tax structures designed to minimise your overall tax liabilities.

Presumably such a scheme removes any IR35 concerns.

Where do I sign?

Really?? I will investigate and if necessary do the needful...

[LisaContractorUmbrella]

Isn't amazing how these 90% boys all go quiet when you ask for details - come on OP what have you got to say for yourself

[SueEllen]

Oude Joris QC120, PO Box 120, Netherlands Antilles.

Yeah I'm a member of that - it's even better as I said.

[ASB]

And ones they don't like eg. the tens of thousands who have used ebt/loan type schemes.

I thought it diplomatic not to mention that. But yes, there was a movement to arrangements hmrc found even less palatable to trg and gain clarity of ones affairs.

[Old Greg]

That's because there is someone on here with a better scheme....

Can't take the competition.

Oude Joris QC120, PO Box 120, Netherlands Antilles.

[d000hg]

As this is a revenue exercise for HMRC I wouldn't be surprised if they have a filtering mechanism in place whereby group 1, i.e. those that know and are prepared for IR35 (PCG membership, qdos insurance, contract reviews, etc), are of even less risk of investigation as HMRC knows it’s chances of success are far lower when compared to picking on group 2

And how does HMRC know that you have had your contracts reviewed, have insurance, PCG membership, etc?

I imagine there are much easier ways to detect likely targets from a simple DB query looking for warning signs.

[LisaContractorUmbrella]

That's because there is someone on here with an even riskier scheme....

Can't take the competition.

FTFY

[LisaContractorUmbrella]

I saw one scheme on Twitter earlier stating you can take home up to 93% - I'd love to know how it works!

Easy - they take 7% and you sort out your own tax

[Clare@InTouch]

I saw one scheme on Twitter earlier stating you can take home up to 93% - I'd love to know how it works!

[SueEllen]

That's because there is someone on here with a better scheme....

Can't take the competition.

[LisaContractorUmbrella]

OP seems to have gone awfully quiet doesn't he