IR35 Investigations. HMRC has its new 'avoiders'.

[ConfusedEasily]

Hi,
so given that HMRC are now targeting contractors em-masse
1,500 GlaxoSmithKline contractors hit by HMRC’s new IR35 letters. Should we now start adding IR35 under HMRC Scheme Enquiries? It may be that running a Ltd. is legal, but given HMG spending commitments, we're an easy target for reaping cash for the coffers whilst being branded dirty (albeit legal) tax avoiders.

Face it,HMRC have a pile of investigators who'll soon be twiddling their thumbs after the LC, so I dare say they'll be targeting Ltd contractors next.

[northernladuk]

I do think so. They two are completely different legislation with different approaches and defense. Ir 35 has been around for decades so just changes to an existing rule.

Best keeping them totally separate IMO.

[dammit chloe]

I do think so. They two are completely different legislation with different approaches and defense. Ir 35 has been around for decades so just changes to an existing rule.

Best keeping them totally separate IMO.

They have had a bunch of temps and juniors dealing with LC.

IR35 is separate but the changes will mean the IR35 investigations will rely even more on fear and nudging than any thing more tangible.

[northernladuk]

They have had a bunch of temps and juniors dealing with LC.

IR35 is separate but the changes will mean the IR35 investigations will rely even more on fear and nudging than any thing more tangible.

I'm not so sure that's 100% true as you've put it. It might be more true now but could change later. If GSK start determining people inside and HMRC have lists of people outside it's difficult to think they won't take action. Odd times for sure but I don't think it's prudent to sit there thinking this is just bluff and bluster.

[jbryce]

I'm not so sure that's 100% true as you've put it. It might be more true now but could change later. If GSK start determining people inside and HMRC have lists of people outside it's difficult to think they won't take action. Odd times for sure but I don't think it's prudent to sit there thinking this is just bluff and bluster.

I agree - what should we do though? How do we proactively protect our Ltds?

HMRC see us as an easy target, but are they likely to hit the entire Contractor community?

[northernladuk]

I agree - what should we do though? How do we proactively protect our Ltds?

HMRC see us as an easy target, but are they likely to hit the entire Contractor community?

You should have been doing it from day one with a standard set of well documented diligence and insurances.

If you've done it properly I don't think there is a need to panic. Everyone got very upset at the Public Sector changes and much of it didn't happen (so far).

If you've done all that you are most definitely not an easy target. There is a massive gap from a scattergun HMRC letter to losing a case so don't panic.

If you haven't done any of that, we'll, I've no idea.

[jbryce]

You should have been doing it from day one with a standard set of well documented diligence and insurances.

If you've done it properly I don't think there is a need to panic. Everyone got very upset at the Public Sector changes and much of it didn't happen (so far).

If you've done all that you are most definitely not an easy target. There is a massive gap from a scattergun HMRC letter to losing a case so don't panic.

If you haven't done any of that, we'll, I've no idea.

Well, until HMRC come calling than most of us won't know.

I guess HMG can always retrospectively change the law

[northernladuk]

Well, until HMRC come calling than most of us won't know.

I guess HMG can always retrospectively change the law

And, no offence meant, but this is exactly why we need to keep these separate. There is no retrospective change in the law required. It's already there. Lots of discussion about how poor it is and how it is applied but its there.

[jbryce]

And, no offence meant, but this is exactly why we need to keep these separate. There is no retrospective change in the law required. It's already there. Lots of discussion about how poor it is and how it is applied but its there.

No offence taken - and, I agree, they should be kept separate.

[BrilloPad]

I do think so. They two are completely different legislation with different approaches and defense. Ir 35 has been around for decades so just changes to an existing rule.

Best keeping them totally separate IMO.

I wish you worked for HMRC!

2 contractors asked me what to do just today. I said IR35 insurance.

QDOS are going to have a field day.....