IR35 Contract Review Tax Deductible?

**northernladuk** · 23 December 2015, 12:25

Would you pay for it if you didn't have a limited? Is it wholly and exclusively for the purpose of business? Do you get any personal benefit??????

**rashm2k** · 23 December 2015, 13:09

Originally posted by northernladuk View Post

Would you pay for it if you didn't have a limited? Is it wholly and exclusively for the purpose of business? Do you get any personal benefit??????

I guess if you weren't a limited you'd be under self assessment only, so you wouldn't need it.
I would suppose that it is only for doing business, I don't get any benefit from it - other than putting my mind at ease (no guarantee of course).

It was only £36 inc vat, so probably not worth the hassle, but it's better in my pocket than hmrcs to squander.

**northernladuk** · 23 December 2015, 13:10

Originally posted by rashm2k View Post

I guess if you weren't a limited you'd be under self assessment only, so you wouldn't need it.
I would suppose that it is only for doing business, I don't get any benefit from it - other than putting my mind at ease (no guarantee of course).

It was only £36 inc vat, so probably not worth the hassle, but it's better in my pocket than hmrcs to squander.

There is your answer then...

**rashm2k** · 23 December 2015, 13:15

Originally posted by northernladuk View Post

There is your answer then...

It's a deduction based on my opinion/thought process/experience, that doesn't make it the answer. I'm curious whether other people have put this as tax deductible, otherwise there's no point me posting this if I don't get other peoples thoughts and consider them.

**northernladuk** · 23 December 2015, 14:22

The three questions I asked you are the rule of thumb for what is tax deductible in general so it's not based on your opinion, it's based on some simple tests which it appears to have passed with flying colours it if you still don't know then have a look at this..

http://www.capitalcityaccountancy.co...ct-reviews.asp

**rashm2k** · 23 December 2015, 15:15

Thanks for the link. It helps when your conclusion is re-asserted.

**supersteamer** · 23 December 2015, 23:08

But what if the review says that the contract is inside IR35? Is it still claimable?

Presumably yes if you have the review done before you start the contract as you are not actually working on the contract at that point (and no if you are daft enough to wait until after starting before getting the review)

edit: not "no" but must be within of your 5% admin allowance

**northernladuk** · 23 December 2015, 23:20

I'd say it is outside of the engagement so isn't part of that 5%
Odd that one of the guides says costs of looking for contracts is part of the 5% but IR35 is on a contract by contract basis so you wouldn't know until you've got each gig. I'd guess that's not really aimed at LTDs that may have to change their status per contract.

Begs the question why would you take a gig where you were inside IR35 though.

**SueEllen** · 24 December 2015, 06:09

Originally posted by supersteamer View Post

But what if the review says that the contract is inside IR35? Is it still claimable?

Presumably yes if you have the review done before you start the contract as you are not actually working on the contract at that point (and no if you are daft enough to wait until after starting before getting the review)

edit: not "no" but must be within of your 5% admin allowance

What happens if you had 2 or more contracts where this one was inside but the rest outside?

IR35 Contract Review Tax Deductible?