IR35 and HMRC
HMRC IR35 investigation? Here’s what to do
Receiving an IR35 compliance check letter from HMRC can seem daunting, and professional guidance from an experienced IR35 defence expert is essential if you want it handled quickly and efficiently.
Before responding to HMRC, engage an advisor with years of specialised experience in this field. They will formulate a bespoke strategy based on your unique situation and circumstances. There is no one-size-fits-all approach.
An expert will review HMRC's deadlines and discern which require urgent action versus those that may be arbitrary. They will ensure your communications are grounded in case law and facts.
With the benefit of their expertise and depth of knowledge, you can demonstrate compliance, avoid unnecessary and excessive time costs, and aim to prevent further scrutiny.
More detail
HMRC is conducting compliance checks on firms' implementation of the Off-payroll rules. Initial letters and questionnaires requesting details on contractor hiring, status assessment processes, and outsourcing arrangements have been sent out.
It is prudent to engage experienced IR35 defence advisors right away to assist with responding to HMRC's inquiries. All correspondence pertaining to the compliance check could potentially end up as evidence in a future tax tribunal if the matter escalates. Having specialist IR35 knowledge is crucial to laying the proper groundwork and foundations from the very beginning.
If HMRC views your responses and is satisfied that your systems and processes are robust, they will likely close the check and take no further action. However, if HMRC is not convinced of your firm's compliance, the check could lead to a lengthy appeals process that could drag on for years.
What should you do when you receive your compliance check:
- If you are a client of IR35 Shield with the protection of our Tax Investigation Service, contact your account manager immediately
- If you would like to protect your business now, please speak to an expert about our Tax Investigation Service
- If you've received your letter, or are in the middle of a compliance check and require expert IR35 defence, get in touch about our IR35 defence services
To find out more about how we successfully defended our client with the minimum of fuss, read our article.
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