IR35 Declaration form for accountant

[dynamicsaxcontractor]

I have a question to the rest of you just to check something.

My accountant is asking me to sign a declaration form if I am inside or outside of IR35. I find this a bit odd as I have never been asked this before (I have got a new accountant but from the same firm).

Is this common practice as I have never been asked to do this before.

[northernladuk]

He has to do you accounts depending on your status. SJD have seperate areas on their spreadsheet for the IR35 numbers so you don't sign anything but you do fill those areas in for them. Kinda the same thing I guess. I would think you are making a formal declaration to the accountant advising him of how to do your accounts.

You could of course ask him what it is for... Just a thought like...

[Craig@Clarity]

It is creeping up towards completing the P35 (employers annual return) time. There is a question on the return which asks whether your company is a service company and if the answer is yes, did IR35 apply. Wondering whether it is related to this or just a disclaimer to one of their reviews?

[Clare@InTouch]

Repeating Craig!

[Wanderer]

My accountant is asking me to sign a declaration form if I am inside or outside of IR35.

If you are inside IR35 then your company income is paid to you in a different way than if you are outside IR35. I guess the accountant just wants to clarify this point so they can do your accounts properly and advise you on how to structure your tax affairs...

[dynamicsaxcontractor]

You could of course ask him what it is for... Just a thought like...

I have, they told me its just for their files which I think is odd.

[dx4100]

I have, they told me its just for their files which I think is odd.

It is not the job of your accountant to decide if you are IR35 caught or not... That is up to you to decide. He is just asking you state how you wish them to treat your tax affairs and make it clear you are stating this and they are not advising it.

Its nothing to worry about...

[Jeremiah@RHJAccountants]

It is not the job of your accountant to decide if you are IR35 caught or not... That is up to you to decide. He is just asking you state how you wish them to treat your tax affairs and make it clear you are stating this and they are not advising it.

Its nothing to worry about...

Very much agree with this.

We actually state this in our engagement letter to all our new clients that we as accountants do not decide if you are inside or outside IR35.

This is the job of the director of the company to decide this.

It is also on the P35 as mentioned but really is nothing to worry about.

[northernladuk]

Repeating Craig!

Business as usual in the office they hey

[Greg@CapitalCity]

I don't think it is common practice, but as pointed out by others it does have tangible benefits for;
(1) Completing the employers P35 return;
(2) Preparing your management accounts and annual accounts;

We ask the question of our clients as we go, since the answer can change from time to time.