Member Since: 28th Jul 2010
1st Apr 2014
We've seen an increase in this type of "intel" gathering by HMRC over the past decade ..... ever since IR35 really.
11th Mar 2014
Get it right for your clients!
he HMRC PDF about RTI and IR35 http://www.hmrc.gov.uk/rti/ir35.pdf says :-
The final FPS will include a specific question to indicate that this is a Service Company and has operated the Intermediaries legislation otherwise known as 'IR35'. Employers who have operated IR35 should answer this question positively which will then alert HMRC that the scheme falls into the special arrangements for IR35.
This indicates to me even more strongly that HMRC only want those that are 'caught' under IR35 to complete that question. I wonder how many other accountants that fill out the RTI for their clients will realise this and effectively drop them in it? Is your PII up to date if you did?
14th Jan 2013
Any umbrella that quotes those figures and mentions and any form of loan is downright dangerous. HMRC are hot on these schemes right now. Avoid! As for incorporation, while most will say yes, I'd warn against the min salary high divvie route as again, HMRC are getting very hot on that too. Depending on your client's business, IR35 may come into play as would any form of income splitting (HMRC are bound to resurect S660A at some point).
21st Dec 2012
That if there is a sniff of IR35 involved ..... you'd better be there to ensure that your client(s) are not stitched up like kippers.
11th Dec 2012
Do the professional thing
How could having her tax advisor field the call go against her? As she is just doing what you have advised, it falls on you to handle this professionally yourself. Remember, there will be questions crafted to entrap the inexperienced.
12th Sep 2012
The first thing that springs to mind
Original post deleted- wrong contrasting -avoidance and evasion!
But re tax avoidance and tax planning distinction you may be interested to read very recent HMRC publication on the subject:
11th Sep 2012
Paul Scholes wrote:
Given the hype over this recently it probably is sensible/pragmatic to avoid the avoidance word, planning sounds harmless enough and mitigation sounds professional, besides which clients don't want to look silly by asking you what it means!
As to Moral duty TI keep them to yourself, I see it as my professional responsibility to inform clients what is legally available to them but to also tell them which bits I want no part of.
Legal or not there is sailing close to shore or pushing the boat out and I don't need the grief or inequity of most of what comes with the latter.
If you have an IT contractor on your books, I take it that you'd tell them to submit contracts to HMRC and/or declare IR35 caught so that you can can keep middle channel .... even though you may consider that IR35 in itself is immoral?
What about divvies - do you recommend low salary - high divvies to mitigate tax even though it could be considered immoral in some circles to avoid paying NIC?
11th Sep 2012
Fear, Uncertainty and Doubt
By deliberately using the language of FUD, HMRC seek to make anything that reduces the maximum amount in tax liablility unacceptable. Thus, they use blurred distinctions and provocative terminology that will produce maximum public and political effect and which seeks to equate legal tax planning with illegal tax evasion.
As a professional, it is your moral duty to ensure that your clients pay the minimum legally required.
23rd Aug 2012
The issue here is
Not that Hok may have used this particular scam. The issue here is that HMRC do nothing about correcting the ability to scam so that they can foist penalties on as many as possible, while burning taxpayer money at tribunal for those who fight back.
21st Aug 2012
A few points here
Never ever submit a contract for IR35 to HMRC. There are plenty of examples when HMRC have been less than impartial and will alway err on the "caught" side. Your client will put his head above the parapet by doing so.
Secondly, agencies are not in the position to determine IR35 status. Get you client to have the contract vetted by professionals in this field .... or better still, get him to join the PCG and get the use of validated contract templates, advice and insurance in one go.
Lastly, with regard to dividends, as long as the law is observed, this is not an issue but beware that HMRC target those who operate in this way and RTI will make it much easier for them to do so. Head above the parapet again.