Re: FN-FORUM: income tax (uk)

date posted 8th January 2008 14:22

I think they said it was a "standard revue" as I've been in business for
over 10 years and hadn't had one. However, I'm pretty certain they only
bothered because I have said I'm outside IR35. But, other contractors
working in the same manner have decided to be hectored into saying they
are inside IR35 because they are scared of the tax man.

I've always said - since it came into place - that I've been outside
IR35 and taken the view of "if you want my money, come and prove I AM
within IR35 legislation". Eventually I guess, my name was drawn out of
the hat and they tried to scare me into submission.

They must have thought - as you said - that a limited number of clients
meant in their eyes I was in disguised employment. But fortunately, as
I also have a few web clients; I've always had multiple concurrent
clients. Add to that a few yellow pages ads, a website advertising for
web design work, a couple of ads in papers here and there AND the most
important : IR35 compliant contracts based on PCG templates. I think
that when they took all of this into consideration as a whole, they
couldn't contest my claim of being outside IR35.

I don't think I was never really told exactly why they wanted a "revue"
- maybe they don;t have to say? But, after a very short phone call from
them, they went straight for the jugular and admitted it was IR35 they
were interested in and wanted a "little chat" at my house. Read in an
other way, I decoded that to mean "We come over and put words in your
mouth; that way making our job of incriminating you easier".

Fortunately, I immediately rang the PCG and they got things under way
with Accountax. I was then told to ring the tax man back and tell them
I will not be seeing them in person at my house or anywhere and that a
tax specialist would be in touch in due course. Apparently, they cannot
insist on meeting you in person. It simply makes it easier for them to
try and ensnare you. From then on, I didn't ever talk to the tax man;
Accountax did it all for me. They know exactly what the minimum they
need to give the tax man is and just how long to make them wait. I
think they p'd them off, but in the end the tax man thought he'd go
after a softer target I think :)

Brendan Oliver wrote:
> Dominic just out of curiosity and concerning IR35 did the IR investigate
> you because you were working with a limited number of clients over an
> extended period?
>
>
>
> -----Original Message-----
> From: [EMAIL REMOVED] [EMAIL REMOVED] On Behalf Of
> Dominic Raywood
> Sent: 08 January 2008 14:24
> To: Brendan Oliver
> Subject: Re: FN-FORUM: income tax (uk)
>
>
>
> From my personal experience; the difference you'll end up paying / not
> paying in tax will be minimal compared to what IR35 can do to you. When
>
> I was investigated, they were only interested in my contracts with
> clients and trying to catch me on IR35.
>
> When that failed, they didn't even look at the accounts or receipts etc.
>
> They spent a while trying to question my mileage claims, but that
> seemed to be simply to make it look like they were really interested
> when they aren't. They spent months trying to pull contracts apart and
> ensnare me in IR35; but being with the PCG, they lost and gave up after
> 6 months. Then they spent a couple of weeks picking on mileage. Then
> they gave up and moved on to some other poor soul.
>
> I used to claim home as an office and a bit of the electric and phones.
> It all seemed such a lot of hassle. Now, my company pays the
> broadband in full; but I've given up bothering with home as office.
> Mind you, I do predominantly work on client sites. If I really did work
>
> from home, I guess I'd claim more.
>
> It does seem to be a grey area though, as each accountant says different
>
> things. So I guess there is no actual tax office suggestions? If not,
> then go for as much as you feel comfortable doing. The worst they can
> then do is force you to pay it back I guess?
>
> Guy Carnegie wrote:
>> Just wondered how people as freelancer working at home worked out tax
>> relief on rent & utilities. I was told a while ago by the helpline to
>> take a percentage of time spent working per week or month off rent and
>
>> kind of similar for utilities (although they're obviously not always
>> in use in 24 hours). Anyone know how much things change if you work
>> from a spare room rather than say a living area?
>>
>> Cheers!
>>
>> _________________________________________________________________
>> Fancy some celeb spotting?
>> https://www.celebmashup.com
>

--
Dominic Raywood
Rubicon Computer Services Limited
W: http://rubiconcsl.com
E: [EMAIL REMOVED]
T: 08456 521 561 (+44 1823 698420)
F: 08456 521 561
M: 07050 204998 (+44 7811 252573)
Skype: RubiconCSL