IR35 investigations

Key points

• It is not always a good idea for the client to meet HMRC in person. It is a better option to offer to HMRC to answer any questions it may have in writing.
• Advisers sometimes fail to take into account tax already paid in the form of corporation tax on the company’s profits and income tax on the dividends paid to the shareholders.
• Make sure to put in a claim for overpayment relief on time to maximise your changes of HMRC accepting it.
• With regard to National Insurance claims the client should acknowledge HMRC’s claim – but do no more than acknowledge it.

I enjoyed reading David Harmer’s insightful article into handling an IR35 claim (‘I will handle it’ Taxation 3 August 2023) but I would like to raise some additional considerations that I think an adviser in this field should be taking account of ...