Mr Blue was unsure about his IR35 status so he went to the Revenue to get an opinion; they considered that he was operating within IR35, following which Mr. Blue contacted us.
We asked Mr Blue to send us the correspondence with the Inland Revenue, a copy of his contract, and some information about the actual working practices. Mr Blue’s case was good and the contract contained a good description of the services and appropriate provisions including a substitution clause.
As such we felt we could respond to the Inland Revenue’s letter with a detailed legal analysis of the agreement in light of the contractual terms and actual working relationship between the parties. The Inland Revenue said that in light of the new evidence and the detailed rebuttal of their arguments that they had reconsidered their opinion and now felt that the engagement was outside the ambit of IR35. This whole process took two months from our initial letter to the Revenue’s change of opinion, saving Mr.Blue a considerable amount of confusion and payments of IR35 tax |