IR35 client not toeing the line: What would you do? | AccountingWEB

IR35 client not toeing the line: What would you do?


I have a client who is, in my opinion an IR35 case but client does not agree with this.

Client invoices his client through the Ltd Co. 

The limited company also owns 2 UK properties.

Client will not prepare their books under IR35 regime, but instead puts every claimable item through his book-keeping and expects a full tax deduction for it.

Client has "employed" his wife to manage the 2 rental properties (at £20K a year) and is putting her wage through his Ltd Co under the rental property cost center.

Further, client has just leased a car for him and a car for her, hers going through the rental property cost center and his going through his cost center.

How would you deal with this client, when they are clearly claiming for items that would not be allowable under IR35?

I had thought of getting the client to sign a disclaimer stating that I had advised an IR35 approach but would operate on the clients instructions providing they indemnified me against all outcomes.



There are 18 comments. Login or register to view them.

If you believe he is misdeclaring his income then

justsotax |

What is your understanding of IR35?

Euan MacLennan |
Euan MacLennan's picture

Two separate issues

cfield |
cfield's picture

good last post

mr. mischief |
mr. mischief's picture

We are indeed in an impossible position ....

Steve Holloway |
Steve Holloway's picture

I forgot that

mr. mischief |
mr. mischief's picture

professional bodies should

uktaxpal |

No more "guidance" please

cfield |
cfield's picture

only for standardisations

uktaxpal |

Many Good Replies!

JasonN |

Often accountants understood IR35 less than contractors

ringi |

Letter of Rep

Ken Howard |

Contractors knowing best

cfield |
cfield's picture

unfair contract terms act

uktaxpal |

sorry Chris I used the term

JasonN |

It's not your problem

davechaplin |

MLR risk (or not)

davidwinch |
davidwinch's picture


Tom 7000 |
Tom 7000's picture