Reply to: IR35 - HMRC! Curious about how they chooose people to investigate/inspect

[oilboil]

Hi,

It's my first year contracting and I've done my best to keep ALL records. I had a break in at xmas during which my laptop bag and file with a lot of important docs included got stolen. I'm unsure what would be required of me to justify being Outside IR35... Especially with regards those clients you've stopped working for.

I believe what they do is look at these forums for people worried about if they will be investigated and then target those - well done for passing stage-gate one of the HMRC check process

[uk contractor]

That's not helping my sense of humour....

This will not help either then
Top City regulator used tax break scheme - BBC News

[Lance]

Panama Papers: David Cameron's father 'ran offshore fund that paid zero UK tax for 30 years' | The Independent
https://www.ft.com/content/ac0fda28-...6-11d5706b613b

That's not helping my sense of humour....

[uk contractor]

every time I read about MPs expenses I'm more shocked about what they're allowed to claim than I am about the stuff they're not supposed to.

So yes, my sense of humour has failed.....

Panama Papers: David Cameron's father 'ran offshore fund that paid zero UK tax for 30 years' | The Independent
https://www.ft.com/content/ac0fda28-...6-11d5706b613b

[Lance]

Sense of humour failure?

every time I read about MPs expenses I'm more shocked about what they're allowed to claim than I am about the stuff they're not supposed to.

So yes, my sense of humour has failed.....

[uk contractor]

I'm not convinced that a tax avoidance scheme used by a prime minister is much use either.
Also MPs have very different rules on what counts as a BIK and what is a legitimate expense so don't use them as an example of good or bad practise.

EIDT: oh and you IMG link doesn't work.

Sense of humour failure?

[Lance]

Use commonsense above all else (this clearly excludes many contractors ):
Do not use offshore tax avoidance schemes (unless the chancellor or PM also use them ).
Do not try to fiddle lunch & travel expenses or especially IT equipment you never use for work purposes like that 80" HDTV & Xbox 1 X!
Do not try to use relatives even though allowed within the letter of the law as tax dodging items (wife or partner is on payroll when its just a tax dodge for example).
Do not try to claim electricity & other utility bills for your bitcoin mining empire as legit tax relief!
Avoid all of the above pay your VAT on time & if your really lucky & or have not yet been caught then your playing the game as it should be played

I'm not convinced that a tax avoidance scheme used by a prime minister is much use either.
Also MPs have very different rules on what counts as a BIK and what is a legitimate expense so don't use them as an example of good or bad practise.

EIDT: oh and you IMG link doesn't work.

[uk contractor]

Use commonsense above all else (this clearly excludes many contractors ):
Do not use offshore tax avoidance schemes (unless the chancellor or PM also use them ).
Do not try to fiddle lunch & travel expenses or especially IT equipment you never use for work purposes like that 80" HDTV & Xbox 1 X!
Do not try to use relatives even though allowed within the letter of the law as tax dodging items (wife or partner is on payroll when its just a tax dodge for example).
Do not try to claim electricity & other utility bills for your bitcoin mining empire as legit tax relief!
Avoid all of the above pay your VAT on time & if your really lucky & or have not yet been caught then your playing the game as it should be played

[northernladuk]

Noted. A lot of the stuff that's missing can and has been retrieved. I was just curious at to whether anyone knows the criteria for ending up being investigated.

That's all.

Thanks for all your input

If we did we'd have reams of documentation and advice on exactly what to do to avoid it really wouldn't we? The fact we don't speaks volumes. Don't screw your tax and VAT returns up seems to be a good start though.

[JIDEARE]

Noted. A lot of the stuff that's missing can and has been retrieved. I was just curious at to whether anyone knows the criteria for ending up being investigated.

That's all.

Thanks for all your input

[northernladuk]

Well incompetence or rank stupidity isn't a factor in their choice so I guess that's all the OP needs to know.

[Hobosapien]

To answer how HMRC choose their targets for IR35 investigation maybe all those on here who have been investigated recently (in last couple of years) can say how they think they were targetted?

Current replies:

I'll be surprised if the above status changes.

HMRC should be going for the low hanging fruit, such as TV presenters and other permitractors that have been in same contract for years, which offer an easy win and a big reward, if they have any sense. Then all those in public sector that are in same contract that were 'outside' prior to April 2017 and are now deemed inside by the client.

In the unlikely event you are unlucky enough to end up in their crosshairs all you need to do is ensure you've got a contract review by a reputable source that says 'outside' after looking at actual working practices. Then IR35 insurance if you're paranoid. Not heard of anyone being investigated once covered by those as HMRC realise they're on a hiding to nothing and quickly move on to the next target.

[cojak]

And what happened to your backup???

[Lurker101]

I'm a bit unsure what you are asking here. Are you asking if the theft of your laptop has any impact on your IR35 status and will it be a factor as to whether you are at risk of an investigation?

That may depend on who replaces the laptop....

[MrButton]

Any ir35 “proof” should still be obtainable? No?

Contracts invoices etc should be in emails?

Bit odd to keep this stuff only on disk and only on a laptop.