IR35 investigations into your status as a contractor may be intrusive & can cause immense stress if not dealt with correctly by specialist advisors with the relevant experience & training.
HMRC are continuing to investigate contractors with a view to charging additional tax as a result of any non-compliance.
Any investigation conducted by HMRC into contractors and their status can have serious consequences should it be found that the contractor falls within the IR35 legislation. Guidance on "off-payroll" working can be found on HMRC's website, linked here.
If the contractor is found to be inside the IR35 rules, HMRC are within their rights to raise an assessment for the additional tax and NICs they believe are due.
In addition, penalties may be charged if HMRC feel that any actions taken were deliberate.
As a result, this type of investigation can be intrusive and has a much broader range than a relatively simple compliance check. If you are subject to such an investigation you will be required to defend your behaviour against any suspicions that HMRC have that you have deliberately misstated your status.
Due to the serious nature of such an investigation, we at The Tax Faculty recommend that you contact us before you respond HMRC's opening contact so that our expert HMRC-handling specialists can provide you with the best possible advice on how you should proceed.
Our experts have many years of experience in both conducting serious tax investigations for HMRC as senior tax inspectors and also in defending clients from such investigations. By discussing your circumstances in a non-judgemental atmosphere with our specialists, we can give you detailed advice throughout the process.
Even if you do not eventually use The Tax Faculty, please do seek advice at an early stage. Whether you are an individual who has been placed under an IR35 investigation, or you are a private practice whose client has received notification that such an investigation is commencing, please do not ignore the letter or attempt to respond without first seeking advice from professionals with the relevant experience.
We also offer our services to those who already have an existing IR35 investigation. Our experts can assist and give a new perspective on existing investigations, providing a pathway to navigate the investigation to a conclusion or indeed arrange appeals into HMRC's decisions and assessments.
In addition to dealing directly with individual client investigations, our specialists have a proven track record of assisting independent practices in dealing with investigations into their clients.
Our experts number industry award-winners for the way in which they handle HMRC investigations, making The Tax Faculty the best place for pragmatic advice. All initial consultations are free of charge as we know how confusing and complex such investigations can be, therefore we want to be sure that we are best placed to assist before you commit to our services.
Have you or one of your clients received a letter from HMRC relating to IR35 or off-payroll working? Before you respond to the letter, please contact us as soon as possible so that we can make sure that you take the necessary steps to ensure that any response is correct, complete and most importantly does not prejudice the future of any resulting investigations.
HMRC have incredibly strict deadlines by which you must reply and your response must be adhere to HMRC's strict criteria, so it is very important that you take expert advice as soon as possible.