Reply to: I need an accountant

[4Contractors]

If for some reason you suspected that someone who claimed to be outside IR35 might be caught, or maybe that client admitted as much, would you as accountants feel obliged to use the new reporting system and shop them? Or is this an inconceivable situation?

The accountants first loyalty should be to his clients and many accountants are very conservative in their advice in order to protect their clients. Most contractor accountants try to make contractors aware of the possible impact of IR35 but the final decision as to how the limited company is run is the clients decision. Clients are also untimately responsible for their signed off accounts.

The only collusion with the taxman I have come across was back in 1998 when my old accountant JSA reached a global settlement with the Inland Revenue over legitimate but apparently disallowed expenses claimed for travel, accom, etc claimed before April 1998. Naturally, JSA also included a fee for their services on top of that. A lot of JSA clients, including me, were forced to cough up over £800 - I never heard of anyone else having to pay this money - another very good reason to steer well clear of JSA !!

[Darren@UptonAccountants]

Ir35

If for some reason you suspected that someone who claimed to be outside IR35 might be caught, or maybe that client admitted as much, would you as accountants feel obliged to use the new reporting system and shop them? Or is this an inconceivable situation?

In the above, we would advise the client what they should be doing, it would then be up to them whether to act on this advice.

[OwlHoot]

I hope we are not doing that but if you quote out of context it's difficult to see the relevance. You may be surprised to know that the vast majority of applications on our website are for umbrella companies

If for some reason you suspected that someone who claimed to be outside IR35 might be caught, or maybe that client admitted as much, would you as accountants feel obliged to use the new reporting system and shop them? Or is this an inconceivable situation?

[OwlHoot]

If you are caught by IR35 those are the only legitimate expenses that can be claimed, apart from the 5% of turnover, of course.

Is that 5% an absolute limit, regardless of legit expenses.

[4Contractors]

Lucifer

The information you are quoting is an extract from the accountants information pack which we are obliged to publish. As contractors our advice to new contractors is completely different and less responsible than that from a far more conservative accountant.

On a personal level, we have always operated outside of IR35 and fought against its injustice but it is up to individuals to collate information and make their own decisions on the issue.

If you advised someone to operate outside of IR35 and they were subsequently investigated and presented with a large tax bill, how would you feel and how would you back up your original comments. It's a bit like lending out a motorcycle crash helmet really - not the done thing !

I know this is tittle tattle amongst us but we take these matters very seriously as some very old posts on the old forum show.

[Lucifer Box]

I think you do need to rethink your wording. The first link on your site is 'Accountant' and underneath that one for 'New Contractors' with the pre-amble "Read this information carefully". After the stuff about what a limited company is, you get the 'Expenses' section which starts off with the "Under new regulations (commonly known as IR35) that came into force from 6th April 2000 there are restrictions on what expenses etc can be claimed..." blurb.

Even starting off with "In certain circumstances.." would be a big help to the new boys.

[4Contractors]

Hi Lucifer

I hope we are not doing that but if you quote out of context it's difficult to see the relevance. You may be surprised to know that the vast majority of applications on our website are for umbrella companies
We both have limited companies run outside of IR35 but it is only fair to present a balanced argument to new contractors who are thoroughly confused by all this IR35 stuff. Come to think of it I don't know anyone who is actually 100% confident with it - do you ?

No wish to fight but quite capable of self defence if necessary

Rhino

[Lucifer Box]

If you are caught by IR35

I think your own words in your response reveal the problem with your site. You are presenting IR35 to the new boys as universally applicable to all, no ifs and no buts (as Chico might say).

Now, let's be nice. It's all a bit of fun.

[4Contractors]

Under new regulations (commonly known as IR35) that came into force from 6th April 2000 there are restrictions on what expenses etc can be claimed by you through the company. The qualifying expenses are as follows:

Travelling, accommodation and subsistence expenses that are allowable (see section on travelling expenses on page 6);

Our link has been removed - heh but thanks Darren

Not quite sure what the problem is here ?? - is it interpretation or simply a case of not being able to read plain English ?

If you are caught by IR35 those are the only legitimate expenses that can be claimed, apart from the 5% of turnover, of course.

Incidentally Lucifer, you edit your post and it still makes about as much sense literally as your comment does factually

[Darren@UptonAccountants]

Acccountants

We recommend one - check the link below.............

....what link?

[Lucifer Box]

Reading complete @rse like this doesn't fill me with confidence these accountants ************ are pushing know what they're doing.

Salary & Expenses

Under new regulations (commonly known as IR35) that came into force from 6th April 2000 there are restrictions on what expenses etc can be claimed by you through the company. The qualifying expenses are as follows:

Travelling, accommodation and subsistence expenses that are allowable (see section on travelling expenses on page 6);

etc., etc.

[4Contractors]

We recommend one - check the link below.............

[xoggoth]

Zeitghost only knows about tax law in the 95th dimension so don't rely on advice from any of those quarters. All the accountants and their menials (by the way, don't say rhino has disappeared along with fiddle?) who hang around this site will also read this. Make sure you ask if they wear a toupee. The one with a toupee is quite good at his job I have heard. If you can call accountancy a job, that is.

Most accountants will be able to set up a company for you. If they charge much more than £55 quid they are ripping you off. Check the internet. I did know a chap claimed to get all his accountancy needs for £250 PA but £700 to £1200 is more usual.

[Pflaps]

Ouch ! Bit touchy there Z.

[OwlHoot]

I may indeed be a sad git, but that was a civil answer by the standards of this forum.

If you don't like it, then feck off.

Sounds like Pissflaps wants to join the CUK forum with a big splash.