report suspected abuse of IR35?

purdyoaten

PlutoinCapricorn wrote: »

Interesting. Is it not possible to report someone anonymously?

It is. The most common forms are telephone calls or anonymous letters which, I may say, are given more priority than most correspondence!

Nevertheless I have certainly come across a few cases where an acrimonious divorce has played a part. One even reported that she had never actually received the 'wife's wages' that her accountant had 'suggested' be included in her husband's accounts.

In such cases it is not always difficult to guess the source of the information.

HappyMJ

zygurat789 wrote: »

If someone is defrauding HMRC and you know it then surely it is your civic duty to report it just like any other crime.
All this talk of snitchees aren't they criminals?

In this case it's just wasting the HMRC's time and our taxpayers money. The contractors work via an umbrella company....they are employed and payroll is managed by another company. There is no tax evasion going on.

I do all of my work through my own limited company. I've had the same clients for several years in the past. It's all legitimate. I even pay myself a tiny wage and give myself large dividends which really is what IR35 is trying to avoid. However, as I have multiple clients, provide my own equipment, take the risk on my work and several other key points I am outside IR35.

zygurat789

HappyMJ wrote: »

In this case it's just wasting the HMRC's time and our taxpayers money. The contractors work via an umbrella company....they are employed and payroll is managed by another company. There is no tax evasion going on.

I do all of my work through my own limited company. I've had the same clients for several years in the past. It's all legitimate. I even pay myself a tiny wage and give myself large dividends which really is what IR35 is trying to avoid. However, as I have multiple clients, provide my own equipment, take the risk on my work and several other key points I am outside IR35.

Or how to be out of context.

Majestic12

IR35 relates to directors working as "disguised employees" and not genuine contractors, for their own personal service companies.

This has NOTHING to do with umbrella companies, as those contracts are in effect employed by the umbrella.

caronoel

Majestic12 wrote: »

IR35 relates to directors working as "disguised employees" and not genuine contractors, for their own personal service companies.

And that's the precise situation in this case.

Anyway, it's been reported now.

Will HMRC investigate all such tip offs?

chrismac1

Hopefully they won't waste much time on this spiteful load of tosh.

quietriot

caronoel wrote: »

Will HMRC investigate all such tip offs?

Whether they do or don't, you'll never find out.

p00hsticks

caronoel wrote: »

And that's the precise situation in this case.

As others have pointed out, there's a world of difference between contractors operating via their own "personal service companies", which you seem to be saying now, and "umbrella companies" which you said in your original post.

So which is it ?

windup

caronoel wrote: »

Asking on behalf of my brother.

He was in a permanent role until he was let go last Summer.

He has been working pretty much full time since then as a contractor, on a very healthy day rate.

is he amongst them?

caronoel wrote: »

Hello all

My wife and I currently have a small BTL portfolio and are considering buying another couple of flats.

Is there any tax advantage to putting the purchase of these properties through a limited company? The existing flats are just owned by me personally

Thanks

glass houses?

mybusiness

Contractors - doing exactly the same job as normal workers who get employee perks - get paid about 4 times more per day than 'normal' employees - THAT is their perk and compensation. It doesn't mean they can aggressively avoid tax also and not pay their way as everyone else has to dear!!!!!!!!