Another IR35 Case Won

Qdos cover thousands of contractors against the ever present threat of IR35, and we are happy to announce that we have successfully completed another investigation case for one of our clients.

Customer QuoteOver the years we have defended over 1,300 contractors in regards to IR35, which is showing no signs of slowing down.

Following a letter from HMRC, our recently cleared client contacted Qdos straight away, and we instantly set to work in ensuring their compliance.

The Case

  • Following HMRC's opening letter, the contractor was asked to undertake the Business Entity Tests for each of the four contracts that fell within the period of enquiry. The result of this was that the contractor only fell into the medium risk category.
  • Qdos ReviewThe contractor had produced a list of factors that they felt placed their company's relevant engagements outside of IR35. After reviewing this, the contractor was presented with a list of questions relating to various employment status factors. 
  • Once the contractor had responded to the questions put forth, a nine page letter was compiled focusing on the main status factors for each contract that supported the opinion that the contracts were not caught by IR35. This was bolstered by references to relevant case law.
  • This evidence was sufficient to enable HMRC to agree with Qdos’ opinion at a very early stage of the enquiry, although the fact that the contractor had concurrent contracts was a significant advantage.

 

It was interesting to see that the client only fell into the ‘medium risk’ category in the Business Entity Test, reiterating the risk that contractors face when relying solely on this form of self-assessment and not taking out additional forms of protection.

"I just wanted to thank you very much for all the support and help that you gave to me whilst representing my limited company in an IR35 Investigation. To have such a quick response from the HMRC that all of the contracts I had held during that time were outside of IR35 was a massive relief to me. Your guidance and representation meant that I could relax more, knowing that your expertise would direct me through this investigation and I couldn’t be happier with the result.  Thank you so much for all your hard work and kindness. The purchase of your IR35 insurance policy is the best insurance I have ever paid for and I can’t recommend you or your policy highly enough.

Thanks again - I think it's finally sinking in"

J, a happy customer

What to Do if You Receive a HMRC Letter

Upon receipt of any HMRC letter please contact a member of our Consultancy team straight away (tel. 0116 2690 992). Our team of experts will be able to advise you as to what course of action should be taken and, if you are an insured client, will assist you in making a claim on your insurance policy. Being notified of an enquiry can be extremely worrying and we hope that by speaking to and advising our clients we can offer some piece of mind and respite to a stressful situation.

IR35 Defence Pack

In HMRC’s opening enquiry letters they will ask whether IR35 has been considered and if so, why the contractor feels that IR35 doesn’t apply. Our new IR35 Defence Pack will assist in presenting such information to HMRC to give you the best possible chance of a successful defence. To find out more and get a quote for our IR35 defence pack, follow the link provided.

IR35 Defence Pack
By:Troy Stevens

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