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Accountants and IR35

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    Accountants and IR35

    My accountant is currently preparing my year end accounts and he feels that I may be subject to IR35. As he is charted, he believes it his professional duty to submit my accountants as within IR35 if he believes this is the case.

    I thought that decission would be solley down to me with know comeback or responsbility on the accountant?

    Anybody had experience of this?

    #2
    Pay for an assesment by someone competent to do it such as QDOS,Accountax etc. Depending on the result decide. cost is fairly cheap £100 - 500, which relative to the tax is nothing.

    Of course if your accountant is adamant and advises you incorrectly then he will be liable , my accountant is also chartered, he sent me a letter asking me to make the decision. A cop out but he sleeps soundly.

    Has your accountant done a full assesment or does he just think its safer to go IR35 caught?

    Comment


      #3
      Accountants and IR35

      He's not strictly a 'contractor' accountant. I was with JSA and then moved to another large firm and had nothing but problems. I then decide to move to a local one-man accountant. He's been superb so far but he is playing safe and admits he's not an IR34 expert. I have agreed to purchase an contract review through Accountax but if they say caught I still don't want to knock on the IR door with my cheque book.

      I've joined the PCG and am willing to fight if the IR coming looking for me but I see no sense in 'owning up' to IR35.

      Comment


        #4
        Your Accountant doesn't really seem to be batting on your side, does he? It is possible to make your own decision on IR35 and absolve the accountant of responsibility - he sounds about as useful as a chocolate teapot and I bet he costs more than £50 + VAT per month for a less than comprehensive service. Get out now!!

        You don't seem to have much luck with the companies you choose - I was with JSA for 4 years - need I say more.

        check out www.************.co.uk

        Comment


          #5
          How does he know ?

          IR35 assessment is based on mixture of fact & law.

          No one can make a decision wether you are within IR35 or not without reviewing your contract & working practices. Your accountant cannot make this decision without knowing the facts, even if he was fully coversed with employment law.

          As you have joined the PCG, I would suggest you take up the PCG's Route35 insurance for another £80. This will give you cover all the way from PAYE review to commissioners hearing.

          Comment


            #6
            Re: How does he know ?

            Accountant is right.

            Accounts have to be prepared in accordance with the fundamental accounting conventions, one of which is prudence - ie recognise all potential costs as soon as they are foreseeable.

            Unless he can be persuaded that IR35 treatment is remote, prudence convention dictates that he has to take account of possible cost in the accounts.

            This is of course entirely different from agreeing with the Inland Revenue that you are subject to IR35 - he should fight tooth and nail for you.

            Comment


              #7
              Re: How does he know ?

              Accountant is right
              We always appreciate valuable input from a professional tax evader

              Comment


                #8
                In all cases?

                Roger,

                Is that true in all cases? Surely if there is only accounts preparation rather than a formal audit the accountant (chartered or otherwise) can just do the common "well that's what the director said anyway - and look he has to that effect signed here".

                Comment


                  #9
                  Re: In all cases?

                  Chartered accountant is in theory bound by his professional rules, which require him to exercise his professional judgement in preparation of accounts - this IMO includes adoption of fundamental accounting concepts. If client refuses this and it is material the effect should be disclosed as a contingent liability. Directors still have responsibility to prepare accounts that show a true and fair view even if there is no audit.

                  Comment


                    #10
                    Re: In all cases?

                    A truly professional & comprehensive answer RR....not even a mention of women's private regions!

                    Comment

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