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IR35 Advice Centre

 

​Experience Matters

CAM Ltd. vs HMRC 2017
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IR35 Case Studies

 

Qdos IR35 Case Study: Experience Matters

Qdos took this case on from a firm of accountants who, following a two-year battle with HMRC on behalf of their contractor client, felt they could no longer fight HMRC effectively.

In taking on the case, Qdos' Head of Tax compiled an effective case for dismissal which reversed HMRC's decision that the contractor was inside of IR35, saving the contractor as estimated £20k in tax.

Read more IR35 case studies.

The Case

 

Qdos were approached by a firm of accountants in London to help their IT contractor client who had been in a two year battle with HMRC. The contractor had supplied their services to a multinational pharmaceutical company which HMRC had decided was caught by IR35.

The IR35 enquiry commenced in the autumn and within the first few months of the new year, the contractor had held a meeting with HMRC. Unfortunately, at that meeting, the contractor said that they believed they had no right of substitution and confirmed that the end client did have certain rights of control over the contractor's work.

That summer, HMRC had met with the end user and by Christmas of that year, gave their opinion that IR35 applied. Despite the contractor’s accountant putting forward some good quality counter evidence and arguments the Status Inspector, known to Qdos as being particularly stubborn and awkward, was not for turning. In the following May, the accountant enlisted the services of Qdos to take up the case.

After a few months of reviewing the evidence and speaking to both the contractor and a particularly helpful contact at the end client, Qdos were able to present new improved evidence to HMRC which was set out in a 3-page letter.

A month later, HMRC responded by reversing their initial decision on the basis that they had to concede that there was an absence of control and personal service. Although no formal PAYE tax and NIC assessments were raised by HMRC, it is estimated that Qdos’ intervention saved the contractor nearly £20k​ in tax (net after corporation tax relief).

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The Company

 

About us

Why Qdos?

 

Qdos Contractor are a leading authority on the IR35 legislation, having handled well over 1,500 IR35 enquiries on behalf of UK contractors since its introduction in 2000. Qdos have been at the forefront of the public sector changes, developing a compliance management process which has enabled over 30 agencies/end clients to minimise disruption, and thousands of contractors to receive an independent and fair assessment of their status. In addition, Qdos are one of the leading providers of specialist contractor services in the UK.

 

Our History

 

Qdos began in 1988 as a tax consultancy business and has grown significantly over the past two decades, providing expert business services, products and advice. Over the years, Qdos has grown in both size and reputation as a trusted contractor insurance broker as well as an expert tax advisor. Our aim is to provide UK contractors with the assistance and service with IR35 issues they need as well as sustaining excellent quality and competitive premiums in the contractor insurance market.

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