One of our client’s has finally had their IR35 case dropped after being subject to an HMRC enquiry for five years!

The protracted nature of this case was due to HMRC’s reluctance to rely on our client’s account of the working practices and instead place greater weight on generic information obtained from a person with no knowledge of our client’s working relationship.   

HMRC’s case relied on answers to questions gathered from people who had no day to day involvement with our client or the way in which he worked. At best the information was generic and non specific in nature.

HMRC believed our client worked on a single project when in fact our client provided services on two separate projects; HMRC said contractors would never be allowed to work from home when in fact our client had worked from home, and HMRC believed our client was subject to the control of the Project Manager when in fact he wasn’t.

HMRC relied on hearsay and second hand information. Not only did HMRC fail to establish the specific facts of this case, they subsequently failed to apply established case law principles to specific facts.

Accountax were only instructed to act once HMRC had raised formal Determinations. We accepted the offer of an independent review and sent in a detailed account of the case highlighting, in particular, the inherent flaws in the way in which HMRC had approached and continued to argue the case. Within a matter of weeks HMRC confirmed they would not be able pursue the case any further.

HMRC all too often argue cases based on their own predetermined opinion and try to ascertain facts in support of this, this was such a case. The only facts in support of HMRC’s view were generic and not factually applicable to our client’s working practices. 

For more information on how we can help with your IR35 issues,
please contact us on 08450 660 035 or email mail@accountaxconsulting.com