As part of the Self-employed business workshop on Thursday 20th March, QDos' Troy Stevens explained IR35, the legal implications, and how to avoid an investigation from HMRC.
2. Qdos Contractor
• Business Insurance
• IR35 Contract Reviews
• IR35 Insurance
• Dealt with over 1,300 IR35 Cases
• Cover over 22,000 Contractors
3. IR35
• The Risks
• Step by Step - IR35 Enquiry
• IR35 Updates
• Compliance
• IR35 Protection
4. IR35
• Name given to the intermediaries
legislation passed in 2000.
• IR35 has an impact on all
contractors who fail to meet the
definition of ‘self-employment’ made
by HMRC.
5. £29,921£29,921
£450 a day£450 a day
Inc. InterestInc. Interest
3 years3 years
+ Potential Penalties+ Potential Penalties
8. IR35 ‘Crackdown’
• “We are increasing HMRC’s
budget to tackle non-compliance.”
• Number of enquiries have risen
significantly.
• New IR35 specialist team
established.
12. Opening Letter
• Analysis of company's income falling in
the period of enquiry.
• Analysis of travelling expenses incurred
in the period of enquiry.
• Copies of all contracts falling in the
period of enquiry.
• Contact details of end client(s).
13. Response to Initial Letter
• A well drafted response can satisfy
HMRC.
• Ensure that this response is well
managed.
14. Meeting with HMRC
• Evidence is weighed up in this
stage.
• If inconclusive, the end client will be
contacted.
• Again this stage should be carefully
managed.
15. Conclusion
• HMRC will make a decision as to
whether the contract(s) fall inside or
outside of IR35.
• A contractor can launch an appeal
of an IR35 decision, which could
end up in civil courts.
20. • Legislation itself has not changed.
• HMRC significantly increasing activity.
• HMRC have now created 4 dedicated
IR35 teams.
• Potential for 2,000 IR35 enquiries a year.
• HMRC have ‘widened scope’ of
enquiries.
• HMRC will be quick in using enquiry
powers to contact end users.
The Future of IR35