Corp tax and IR35

[mudskipper]

The corp tax return (CT600) that I get from my accountant includes a 'letter of representation'. This year's had a long section about IR35. I checked last year's letter and there was a short mention, but not the detailed list of points in this year's.

Is this a new requirement from HMRC?

(Yes, I have asked my accountant - but thought it might merit a wider discussion)

[mudskipper]

Gah, meant to post in accounting...

[Ticktock]

Have you tried searching?
What did your accountant say?

[northernladuk]

Are you sure you are cut out for posting in different parts of the forum?

[suityou01]

Gah, meant to post in accounting...

Open season then

[TheCyclingProgrammer]

I know this isn't the right part of the forum but as you mentioned it...I also got a letter of representations from my accountant this year to sign with my accounts. First year with my new accountant, I've never had one of these in the past.

Mine includes a long (reasonable) list, and includes:

I confirm that there are no contracts or work undertaken by the company that fall within IR35 (employment status issues)

(He had already asked me if I had any inside IR35 contracts to which I answered no).

The only reservation I have is that whilst I'm confident in my IR35 status, none of us can definitively 100% say we aren't caught. I might ask him to append "to the best of my knowledge" but it probably doesn't matter...I think it's just to cover my accountant and confirms that everything I have told him that the accounts are based on is true/accurate.

[Clare@InTouch]

IR35 is getting a lot more focus from HMRC these days, so it's massively important that the director of the company understands what IR35 is and realises that it's their responsibility to make sure the accounts are prepared on the right basis (inside, outside, mix of the two). A more detailed summary of this on the letter of rep recognises that, and hopefully encourages people to ask and make sure if they're not sure!

[mudskipper]

IR35 is getting a lot more focus from HMRC these days, so it's massively important that the director of the company understands what IR35 is and realises that it's their responsibility to make sure the accounts are prepared on the right basis (inside, outside, mix of the two). A more detailed summary of this on the letter of rep recognises that, and hopefully encourages people to ask and make sure if they're not sure!

Ah, that makes sense. I think I missed the point of the letter - is it a letter from myCo to you, not from myCo to HMRC?

Edit: Yep, obviously is - I really should learn to read...

[TheCyclingProgrammer]

Ah, that makes sense. I think I missed the point of the letter - is it a letter from myCo to you, not from myCo to HMRC?

Edit: Yep, obviously is - I really should learn to read...

It's essentially a formal declaration of all of the questions your accountant has probably (hopefully) already asked you via email/phone whilst preparing your accounts.

[Clare@InTouch]

Ah, that makes sense. I think I missed the point of the letter - is it a letter from myCo to you, not from myCo to HMRC?

Edit: Yep, obviously is - I really should learn to read...

It's you to the accountant, just making sure that we've got it in writing that you understand everything. For someone who takes an interest it's nothing new, it's just confirming your status and that you've taken due care.

For people who tell us they are outside when they know full well they are inside, it covers our back if HMRC investigate later down line!