I'm doing a forecast for the tax year 19/20 and my projected CT is only 5% of the projected turnover. I'm wondering if such a low value would attract any attention with our friends at HMRC?
The contract I'm pricing up is outside IR35, and involves extensive travel and overnight costs which, when added to pension contributions and salaries, reduces the gross profit to under 30% of gross turnover which is why the CT is so low.
Obviously I'll take the usual IR35 precautions but from what I understand the changes of an investigation in normal circumstances are slim, but I'm wondering if my chances are higher given the headline numbers?
Appreciate there's no hard evidence here so just looking for any observations anyone has from their own experiences of HMRC Investigations
Thanks in advance for any (helpful, non-sarcastic, "speak to your accountant" type) responses!
The contract I'm pricing up is outside IR35, and involves extensive travel and overnight costs which, when added to pension contributions and salaries, reduces the gross profit to under 30% of gross turnover which is why the CT is so low.
Obviously I'll take the usual IR35 precautions but from what I understand the changes of an investigation in normal circumstances are slim, but I'm wondering if my chances are higher given the headline numbers?
Appreciate there's no hard evidence here so just looking for any observations anyone has from their own experiences of HMRC Investigations
Thanks in advance for any (helpful, non-sarcastic, "speak to your accountant" type) responses!
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