1..2...Hector's coming for YOU

The SMG · 12-06-2009, 04:53 PM

I thought I'd lighten up your Friday by asking a simple question - have you ever been investigated by HMRC? I've heard sooo many stories about Aspect Enquiries, Status Enquiries, and Full Blown Investigations etc but often wondered whether these were just urban myths or actual things and that to real people.

G

Malvolio · 12-06-2009, 07:59 PM

Quote:

Originally Posted by The SMG

I thought I'd lighten up your Friday by asking a simple question - have you ever been investigated by HMRC? I've heard sooo many stories about Aspect Enquiries, Status Enquiries, and Full Blown Investigations etc but often wondered whether these were just urban myths or actual things and that to real people.

G

I know people undergoing one at the moment. All have been over 2 years, one is getting close to 7. They are not something anyone would want to be put through.

CliveP · 13-06-2009, 02:39 PM

I had a minor enquiry once but I didn't turn into anything more serious. What are your friends being investigated for Malvolio?

Malvolio · 13-06-2009, 04:35 PM

Quote:

Originally Posted by CliveP

I had a minor enquiry once but I didn't turn into anything more serious. What are your friends being investigated for Malvolio?

Mostly unwinnable IR35 cases, although one hasn't turned into one yet. It will...

Pistachio · 14-06-2009, 11:54 AM

No... incidentally Malvolio, what's your thoughts on the question I posted in the ask an expert section? Ever come across an investigation from winding down a company in your experience?

Malvolio · 14-06-2009, 12:59 PM

Quote:

Originally Posted by Pistachio

No... incidentally Malvolio, what's your thoughts on the question I posted in the ask an expert section? Ever come across an investigation from winding down a company in your experience?

I've heard of it happening but no real knowledge of it. Don't forget they do a quick check on the company before they allow you to close it, if they find something odd or erroneous they will check it out and that might turn into an aspect inquiry. It's no different to any other query in that respect.

CliveP · 14-06-2009, 08:24 PM

Do you really think HMRC work on a yield basis? For example, let's say they target two identical IR35 cases where there's a 70% chance of winning. One has the potential of collecting £100,000 and the other just £25,000. Would they 'go after' the £100,000 case just because there's a bigger carrot?

The SMG · 15-06-2009, 08:05 AM

I think they go after the 'low hanging fruit' as a starter for ten then take a view of whether the cost of investigating outweighs the potential tax take. Probably...

Bel · 15-06-2009, 10:19 PM

Quote:

Originally Posted by The SMG

I thought I'd lighten up your Friday by asking a simple question - have you ever been investigated by HMRC? I've heard sooo many stories about Aspect Enquiries, Status Enquiries, and Full Blown Investigations etc but often wondered whether these were just urban myths or actual things and that to real people.

G

I recently spoke to someone about an IR35 investigation they went through a few years ago. It was a very unpleasant experience indeed, for both him and his wife. His investigation lasted around 2 years. It could have been over sooner, but HMRC concluded that he was caught by IR35. So he challenged their decision, prolonging the investigation further. Eventually, HMRC decided that he wasn't caught after all. As you'd expect, the upper contract and hirer witness testimonials also formed part of the investigation.

The SMG · 16-06-2009, 09:44 AM

Quote:

Originally Posted by Bel

I recently spoke to someone about an IR35 investigation they went through a few years ago. It was a very unpleasant experience indeed, for both him and his wife. His investigation lasted around 2 years. It could have been over sooner, but HMRC concluded that he was caught by IR35. So he challenged their decision, prolonging the investigation further. Eventually, HMRC decided that he wasn't caught after all. As you'd expect, the upper contract and hirer witness testimonials also formed part of the investigation.

Bel, do you think there's a cut off point (time / money) where HMRC decide NOT to investigate? For example, if an enquiry is only likely to recoup, say £3,500 for a 7 week assignment, do you think they'd actually bother?