IR35 Defence

[George]

Hi
I’m being chased by the tax man with regard to a contract between an IT agency and my limited company. Things have reached a stage whereby the tax man has reviewed all the relevant contracts but deemed me to be employed rather than self employed under IR35. Now I’m liable for an extra chunk of tax.
Please could someone recommend an organisation that will help me determine whether to take this case any further? I’m willing to fight on but only if I think I have a significant chance of winning and I need some initial advice as to whether this is the case or not. I’ve seen numerous websites offering IR35-type services but would greatly appreciate a personal recommendation/experiences.

Ta.

[malvolio]

The PCG. Join now (online via www.pcg.org.uk) it will cost £250-ish for PCG Plus. You wll get help with the legalities and you will get solid advice. You may even get assistance with the legal costs and representation you are now looking at needing. You may even find you are outside IR35 anyway.

Do not do anything else, including talking to accountants, advisors and definitley not the taxman until you have spoken to PCG first - this is too important to sod around with.

Oh, and just to finish the Christmas cheer, at best this will drag on for 6 months or so, it may run for three years. That's why you need someone around you to help. Best of luck anyway.

[partimer]

pcg

An IR35 investigation, our worse nightmare. It highlights why you have to have everything in place before an investigation. Never stick your head in the sand and hope Hector doesn't call. Best of luck ...

Malvolio,
Could you please clear something up ?
I was under the impression that if you were already under the microscope with Hector, joining the PCG was too late. They wouldn't handle your case as it's already started and you may already have a duff (inside IR35) contract (which they didn't review).

If this isn't the case what is to stop everybody joining as soon as Hector started knocking on people's door and getting a heck of a lot of benefits for 250 quid ? That alone will probably cover legal fees you would have had to pay.

The PCG aren't that daft are they ?

[malvolio]

No, you will not qualify for the financial insurance that covers legal fees, court appearances and all the other malarkey once an investigation into IR35 has started. For the OP's peace of mind, its worth checking if he does qualify at some level (although in his case I doubt it - I think he's a bit too late).

However, it is still the best (arguably the only) organisation that understands the subject fully and can give effective and impartial advice. Dealing with Hector in this area is fiendishly difficult, you cannot do it by yourself and you will need expert support. Also there is always the chance that a member can get a discounted rate with people like Lawspeed. Don't forget you're potetnially looking at £10k fees on top of any back tax, every little helps.

As regards contracts, the cover is for all contracts, good or bad, unlike some other providers who only cover "IR35 not caught" contracts (like there is such a thing) and on a per-contract basis.

So in this case, he may not get money, but he will get the support - and that's half the battle!

[partimer]

all clear

Thanks. That's what I thought which is why I already maintained that you want everything in place (proper IR35 review + insurance, etc.) before Hector comes calling. The amount of people who close their eyes and cross their fingers always just amaze me. They seem to think that all they have to pay is the extra tax. Not quite true and having Hector over your shoulder for X years like a poison cloud, can't be fun.

[xoggoth]

That reminds me. Must renew my insurance. I suddenly seem to be back in the contract market again. Bollox. I used to like doing nothing.