MVL and IR35

[helen7]

Hi,

Last year I shut down my LTD via MVL. I still hold QDOS TLC35 IR35 insurance which expires next month.

Is it possible for HMRC to open an IR35 enquiry after my company has been shut down by MVL?

[northernladuk]

Close Your Company, Avoid IR35? - Contractor Weekly

[Maslins]

Close Your Company, Avoid IR35? - Contractor Weekly

That's a good, balanced article.

Also there was concern that a company simply going into liquidation would lead to high risk of IR35 investigation (on a "if we don't do it now we'll never be able to" logic). Not once have MVL Online seen a new enquiry started following a company going into liquidation, and that's based on several hundred cases.

Obviously doesn't guarantee it'll never happen...but as suggested in the article, it certainly doesn't seem to be high likelihood.

[TheFaQQer]

Is it possible for HMRC to open an IR35 enquiry after my company has been shut down by MVL?

Yes, it's possible.

If I was in your position, I'd personally pay for another year of IPSE membership (probably only at the standard level) for peace of mind. You can find out more about what IPSE does here.

[VillageContractor]

Yes, it's possible.

If I was in your position, I'd personally pay for another year of IPSE membership (probably only at the standard level) for peace of mind. You can find out more about what IPSE does here.

Why only a year? Also the link that NLUK posted is 4 years old. How sure are we it's still relevant?

[northernladuk]

Why only a year? Also the link that NLUK posted is 4 years old. How sure are we it's still relevant?

Whether it is or isn't is one question. Is it worth spending a touch over £200 to be sure is another. I know the answer to the latter.

[ChimpMaster]

Whether it is or isn't is one question. Is it worth spending a touch over £200 to be sure is another. I know the answer to the latter.

Given the government's and HMRC's new stance on time travel, it might be the case that you should keep IR35 insurance forever.

[TheFaQQer]

Why only a year? Also the link that NLUK posted is 4 years old. How sure are we it's still relevant?

After a year, I'm told (from anecdotal evidence only) that the chances of an investigation drop further.

HMRC could easily open an investigation for six years. IPSE Standard is about £15 a month, IPSE Plus is £24 a month (including VAT), and you'll be certain of having expert investigation cover if HMRC come calling.

At that price I'd probably do it for more than a year, to be honest.

[VillageContractor]

Given the government's and HMRC's new stance on time travel, it might be the case that you should keep IR35 insurance forever.

That's what I meant in my post - there is no magic cut off after a year (unless there is and my accountant hasn't told me )

[TheFaQQer]

Given the government's and HMRC's new stance on time travel, it might be the case that you should keep IR35 insurance forever.

Well, there is that, yes Retrospective legislation is always a possibility as we've seen - in which case £15 a month doesn't look that bad