.png)
IR35 investigation
Are you facing an IR35 investigation and have received a request for information from HMRC? If so, our Tax Dispute Experts can manage the process on your behalf and work towards a swift resolution.
Handling HMRC Communication
Our experts represent you in all communications with HMRC, ensuring that responses are timely and accurate.
Prepare and submit required documents and evidence
Our meticulous approach ensures that HMRC receives accurate and complete information, which helps in avoiding delays and complications.
Provide strategic advice to navigate the investigation effectively
We provide strategic advice tailored to your specific situation. We have a proven track record of success, often closing IR35 investigations with reduced and even no penalties.
Why is HMRC Contacting Me?
HMRC is contacting dog breeders as part of a targeted campaign to ensure that all income from the sale of dogs is properly declared and taxed. This initiative is aimed at identifying individuals and businesses that may have received taxable income without reporting it. HMRC’s primary goal is to ensure compliance with tax laws and to recover any unpaid taxes.
What is IR35?
IR35, also known as the off-payroll working rules, is a piece of UK tax legislation designed to combat tax avoidance by workers supplying their services to clients via an intermediary, such as a personal service company (PSC), but who would be an employee if the intermediary was not used. Introduced in 2000, IR35 ensures that workers pay broadly the same Income Tax and National Insurance contributions as an employee.
What Triggers
an IR35 Investigation?
HMRC may initiate an IR35 investigation if they suspect that a contractor is falsely declaring their employment status. Common triggers include:
-
Contracts that closely resemble an employment contract.
-
Complaints or reports from clients or competitors.
-
Regular or long-term engagement with a single client.
Certain sectors are more scrutinised by HMRC due to their contracting practices. High-risk sectors include IT and technology, financial services, construction and engineering, healthcare, media and entertainment, and oil and gas. In these industries, contractors often work on project-based contracts or through PSCs, which can blur the lines between employment and self-employment.
What Triggers
an IR35 Investigation?
HMRC may initiate an IR35 investigation if they suspect that a contractor is falsely declaring their employment status. Common triggers include:
-
Contracts that closely resemble an employment contract.
-
Complaints or reports from clients or competitors.
-
Regular or long-term engagement with a single client.
Certain sectors are more scrutinised by HMRC due to their contracting practices. High-risk sectors include IT and technology, financial services, construction and engineering, healthcare, media and entertainment, and oil and gas. In these industries, contractors often work on project-based contracts or through PSCs, which can blur the lines between employment and self-employment.
What Triggers
an IR35 Investigation?
HMRC may initiate an IR35 investigation if they suspect that a contractor is falsely declaring their employment status. Common triggers include:
-
Contracts that closely resemble an employment contract.
-
Complaints or reports from clients or competitors.
-
Regular or long-term engagement with a single client.
Certain sectors are more scrutinised by HMRC due to their contracting practices. High-risk sectors include IT and technology, financial services, construction and engineering, healthcare, media and entertainment, and oil and gas. In these industries, contractors often work on project-based contracts or through PSCs, which can blur the lines between employment and self-employment.
What Triggers
an IR35 Investigation?
HMRC may initiate an IR35 investigation if they suspect that a contractor is falsely declaring their employment status. Common triggers include:
-
Contracts that closely resemble an employment contract.
-
Complaints or reports from clients or competitors.
-
Regular or long-term engagement with a single client.
Certain sectors are more scrutinised by HMRC due to their contracting practices. High-risk sectors include IT and technology, financial services, construction and engineering, healthcare, media and entertainment, and oil and gas. In these industries, contractors often work on project-based contracts or through PSCs, which can blur the lines between employment and self-employment.
How Our Tax Dispute Experts Can Help
We offer comprehensive contract reviews to identify potential IR35 risks. Our experts conduct detailed assessments of your working arrangements to ensure compliance and minimise risk.
During the investigation, our team will:
-
Act as Your Representative: Manage all communications with HMRC to ensure professionalism and efficiency.
-
Prepare Detailed Documentation: Collect and organize all necessary documents, ensuring accurate and complete submissions.
-
Review Contracts and Engagements: Analyse your contracts and working arrangements to identify and address IR35 risks.
-
Provide Strategic Advice: Develop tailored strategies to navigate the investigation and address any issues effectively.
-
Handle Information Requests: Respond to HMRC's requests for additional information promptly and accurately.
-
Manage Risks: Identify potential problem areas and implement strategies to mitigate risks.
-
Offer Ongoing Support: Keep you informed with regular updates and ensure you understand each phase of the investigation.