Contractors working via their own limited company have been advised by the PCG to ensure they are not caught under the IR35 legislation and ensure all new contracts are reviewed by an IR35 expert. This warning has come as the PCG have noticed that HMRC appear to be adopting a more devious approach to tax enquiries.
Reported on Contract Eye, tax advisers from the PCG have seen HMRC approaching members by sending them a letter, giving them a telephone call or even arranging an informal meeting, rather than issuing a formal notice of dispute when looking into a contractor’s tax affairs.
One contractor had even received a letter concerning his IR35 status after he met with HMRC to discuss VAT. Nothing regarding contracts or working arrangements was said to have been discussed at the meeting.
The PCG advise contractors who have been approached by HMRC to seek professional advice from the PCG or their accountant before responding. Contractors are not legally obliged to meet a tax officer in person – even for an informal meeting.
Contractor UK added that despite IR35 facing a review, “contractors should keep ‘vigilant’ because HMRC appears to be pushing for meetings with an ‘ulterior motive’”.
