ENSURING HIRERS UNDERSTAND IR35 INVESTIGATIONS

HMRC can contact businesses at any time regarding IR35 compliance, even if you have a well-established strategy in place. This unexpected scrutiny can be alarming, especially for businesses unsure about how to handle an investigation.

As the focus on IR35 enforcement grows, more businesses are seeking to understand the investigation process and ensure they are fully prepared.

Below is an example of a letter hirers have received from HMRC in October 2021, asking for them to detail their current processes and procedures. With the concern of failing a HMRC investigation being at an all-time high, we have seen an increase in businesses wanting to learn more about IR35 investigations, so they can ensure they are truly prepared.

HMRC LETTER EXAMPLE


 

BUSINESS SOLUTION FOR HIRERS

As an SRA regulated law firm with legal professionals who specialise in IR35, we are able to work with you to ensure you understand how HMRC go about an IR35 investigation and help you prepare if ever challenged.

Our Mock Investigation Service is designed to simulate the investigation process, providing a proactive approach to ensure your business is ready for any scrutiny. This service helps identify risks and liabilities, ensuring that your IR35 compliance processes are robust and aligned with HMRC’s requirements.

Our solicitors will oversee the entire mock investigation, guiding you through each step of the process. During the session, we will explain the pre-investigation administration you need to complete, including the data you must gather and submit to HMRC. Our team will act as investigators, requiring your hiring manager to select a contractor and discuss the engagement. You will also play the role of the hiring manager, while we assess your processes and the IR35 status of the chosen role through detailed questioning. We will review your Status Determination Statement (SDS) and contract, helping to identify any gaps or areas of improvement.

Brookson Legal’s Mock Investigation Service equips businesses with the necessary tools to demonstrate Reasonable Care and remain compliant under HMRC’s growing focus on IR35 enforcement. You will receive a comprehensive report detailing our findings, solutions for any compliance gaps, and actionable steps to address them. Additionally, we provide a 6-month follow-up review to ensure that the recommended actions have been effectively implemented.

DEDICATED SPECIALIST

Led by our senior solicitors.

FACILITATION OF INVESTIGATION

We will set up a mock HMRC investigation to give you a better understanding of the process.

EDUCATION ON HMRC INVESTIGATION

Provide an overview of sessions and learning outcomes, including an explanation of any pre-investigation administration.

HMRC COMPLIANCE

Discuss processes to establish if reasonable care is met and then assess IR35 status of the role.

ADDITIONAL SUPPORT

We will identify gaps or any areas of improvement.

REGULATED

All services are provided by an SRA regulated law firm and advice is protected by client legal privilege and professional indemnity insurance.