Reply to: Hmrc

[Lockhouse]

Did you have insurance, (i.e. pcg backing) or did you have to do it all yourself?

PCG all the way.

[Bagpuss]

Do they set internally a quota or threshould to capture those who pay themselves low salary and high div.? In this case, what should be paid attention to?

If indeed they are picking certain cases, they will be doing it on likely take?

i.e. go for those who will have to pay the most. Of course their hit rate is rather poor, but who wants the hassle?

[topgun]

Do they set internally a quota or threshould to capture those who pay themselves low salary and high div.? In this case, what should be paid attention to?

[DimPrawn]

That doesn't appear to be true, low sallary seem to be first in line. I haven't yet heard of anyone drawing high sallary being investigated. Of course I've only heard of a douzen of people who have, but they all have the same thing in common.

Bag-o-pus, can you explain the logic of paying all your companies profits as salary being a great way to avoid an IR35 investigation?

Like, yeah, don't tick the IR35 box and pay all that tax and NI on the salary, simply pay yourself all the profits in salary and pay all that tax and NI instead!

That'll show the greedy, punitive ****ers!

[Ruprect]

Yes and yes - 5 contracts all outside, took nearly 4 years and a huge amount of grief.

Did you have insurance, (i.e. pcg backing) or did you have to do it all yourself?

[Lockhouse]

Yes and yes - 5 contracts all outside, took nearly 4 years and a huge amount of grief.

[Bagpuss]

Any company which has ticked the "IR35 does not apply" box on their return, irrespective of expenses.

That doesn't appear to be true, low sallary seem to be first in line. I haven't yet heard of anyone drawing high sallary being investigated. Of course I've only heard of a douzen of people who have, but they all have the same thing in common.

[ZZZZ Snoozer]

and who would you start with? someone 'earning' 5-10k per anumn with 30k expenses or someone earning 15k with 10k expenses?

Any company which has ticked the "IR35 does not apply" box on their return, irrespective of expenses.

[Bagpuss]

All HMRC have to do is to to the Companies House website, search for all Ltds that describe themselves as Computer something-or-other, and start the investigation. Simple as that.

and who would you start with? someone 'earning' 5-10k per anumn with 30k expenses or someone earning 15k with 10k expenses?

[ChimpMaster]

All HMRC have to do is to to the Companies House website, search for all Ltds that describe themselves as Computer something-or-other, and start the investigation. Simple as that.

[EternalOptimist]

Yes and Yes HTH

Troll, you are my f***in hero

well done. I wish you would tell us the story sometime

[Troll]

Who here has actually been investigated regarding IR35? and did you win?

Yes and Yes HTH

[darmstadt]

Although not being investigated as such and nor am I in IR35 or out of IR35, the Finanzamt have, for the first time queried something. First of all they want to know what I do for a living and whether it makes me Freiberuflich (no business tax, Gewerbesteuer) or Selbständig (pay business tax.) That one is pretty much sorted by just giving them the first page of my CV. Next up is they are currently processing my tax return for 2005 and have questioned some invoices for May 2005 which was in fact for Jan-May. They've asked for all receipts, which they in fact have, so they can check to see if I should be claiming VAT in advance (don't ask!) They've got in a muddle because a lot of the receipts are for countries outside of Germany so no VAT there plus each month I get a retainer from an American firm for which I don't invoice but do declare. The only worrying thing is, is that the German tax man has wide sweeping powers and has a habit of knocking on your door in the early hours of the morning and taking every bit of paperwork (and computers) you have with him, and he don't need a warrant!

[ZZZZ Snoozer]

I think its a definate trigger like.

Plus, my expenses were so excessive! £1k a month for a flat, travel back and forth to Manchester weekly, travel back and forth to work daily, meals out etc - it added up to about £30k!

All legal, so I thought.

I'll just have to wait and see how it pans out.

30k in expenses - you amateur!

http://news.bbc.co.uk/1/hi/scotland/6380357.stm

[ZZZZ Snoozer]

Who here has actually been investigated regarding IR35? and did you win?

Been investigated (3 years), won. Was paying about min. wage x 2 as salary so as to make some pension contribs.