retrospective tax if inside ir35

[Andy2]

If you gets investigated by hmrc and contract is deemed inside ir35, how much retrospective tax is demanded by hmrc ?

Assuming the following:
company income 100k
director's dividends 30k
salary and expenses 10k
corp. tax 18k

if the contract was inside ir35 , tax+NI would have been 43k

will hmrc demand 43k or 25k (after deducting corp. tax)?

[jamesbrown]

This has been asked several times, including recently. Try searching. Initially, it will be somewhere north of your higher figure after interest and, if careless or fraudulent, penalties. However, they will probably accept the offset against CT eventually (in principle, the time window to submit a revised CT600 has probably passed).

[northernladuk]

+penalties +interest.

We don't know but it's a lot so the actual figure doesn't really matter.

[Andy2]

what if 40k out of that is paid in pension
will that reduce the tax bill ?

[jamesbrown]

what if 40k out of that is paid in pension
will that reduce the tax bill ?

Yes.

[Lance]

what if 40k out of that is paid in pension
will that reduce the tax bill ?

If you’ve not known that till now, what else have you missed that might be more critical?
That is a contracting 101 question....

[Andy2]

If you’ve not known that till now, what else have you missed that might be more critical?
That is a contracting 101 question....

i know but asking from retrospective tax point of view if it is taken into consideration.

[Lance]

i know but asking from retrospective tax point of view if it is taken into consideration.

I guess that would become part of the negotiation. If you have to pay tax on it then the government would also have to add money to it as a personal contribution... messy.... different department as well... really messy...