In its response to the House of Lords Report, HMRC recently announced that the cost of removing IR35 would be £550million in lost taxes to the Exchequer. Having created four specialist offices to deal with IR35, one would imagine that the intention is to police IR35 better to increase tax revenues.
Therefore it is essential that your clients understand their IR35 status; and there is no better starting point than a comprehensive and independent contract review. We will review your clients’ contracts, along with their working practices, to determine whether or not they are operating outside of IR35. Please see the IR35 Status questionnaire located at the bottom of this page.
They will receive a written report with suggested contract amendments where appropriate, together with an opinion on their status. Whilst HMRC are at liberty to challenge the opinion, it does demonstrate that your client has undertaken the appropriate level of due diligence.
If a contract is deemed ‘outside of’ or ‘not caught by’ IR35, Abbey Tax can also offer tax losses insurance to your contractor (personal service company) clients, which will pay any tax, interest and even penalties, if HMRC is successful in arguing that IR35 applies.
In order to have the tax losses insurance, they will also need tax enquiry protection, which means that if you are offering a tax investigations package to your client base, they will need to subscribe to your service.
To ensure your clients' businesses are protected, please contact the contractor section on 0345 223 2727
or email firstname.lastname@example.org
Click the thumbnail to download the IR35 Status questionnaire. Please forward your completed questionnaire to the contract reviews team.