How to handle an HMRC enquiry

Arguably the best course of action a taxpayer can take to defend their IR35 position begins before HMRC makes contact. While it may be an adage it really does pay to prepare and to seek professional advice from an accountant or an independent specialist where necessary.

Whether the client is a contractor operating under Chapter 8 who must determine their own IR35 position or an end client or agency within Chapter 10 faced with decision making or fee payer responsibilities – helping them understand their position now warts and all will pay dividends in the event of an enquiry. Regardless of which chapter of the legislation we are dealing with the law on IR35 is the same.

An accountant or adviser does not want to discover problems during an active enquiry – by that point it’s too late to rectify anything...