Inside IR35

Author
Discussion

Dr Jekyll

23,820 posts

262 months

Saturday 27th January 2018
quotequote all
But is your ethical duty to advise the client how to minimise their tax bill (if that's what they want), to maximise it, or to simply ensure the correct amount is paid for the circumstances.

I would hope the accountant's duty is to the client that hires them, not to the government.

ninja-lewis

4,242 posts

191 months

Saturday 27th January 2018
quotequote all
Dr Jekyll said:
But is your ethical duty to advise the client how to minimise their tax bill (if that's what they want), to maximise it, or to simply ensure the correct amount is paid for the circumstances.

I would hope the accountant's duty is to the client that hires them, not to the government.
The Professional Conduct in Relation to Taxation guidance states that tax agents and advisers among other things:
  • help taxpayers to comply with their tax obligations so that they pay the right amount of tax at the right time and thereby help and encourage compliance;
  • help protect them from possible penalties and sanctions for non-compliance which might otherwise arise;
  • assist those who have not been fully compliant to become so;
  • act in the interests of clients by advising taxpayers on the reliefs and incentives which Parliament has introduced, recognising the economic and social objectives for their introduction and thereby helping to support growth and competitiveness;
  • advise clients of the tax consequences (for themselves, their families, affiliates, customers, employees, owners or other stakeholders) of actions that they have taken, or propose to take, especially in circumstances where the law may be unclear, outdated, or inconsistent;
  • advise taxpayers on how such tax liabilities and compliance costs can be mitigated by making reasonable and appropriate use of the legislative framework and the choices available, particularly where transactions or arrangements can reasonably be structured in different ways with different tax consequences; and
  • advise clients on how to resolve lawfully and effectively legitimate differences of view with the tax authorities (or sometimes, stakeholders or other taxpayers).
https://www.icaew.com/technical/tax/pcrt

Eric Mc

122,053 posts

266 months

Saturday 27th January 2018
quotequote all
ninja-lewis said:
The Professional Conduct in Relation to Taxation guidance states that tax agents and advisers among other things:
  • help taxpayers to comply with their tax obligations so that they pay the right amount of tax at the right time and thereby help and encourage compliance;
  • help protect them from possible penalties and sanctions for non-compliance which might otherwise arise;
  • assist those who have not been fully compliant to become so;
  • act in the interests of clients by advising taxpayers on the reliefs and incentives which Parliament has introduced, recognising the economic and social objectives for their introduction and thereby helping to support growth and competitiveness;
  • advise clients of the tax consequences (for themselves, their families, affiliates, customers, employees, owners or other stakeholders) of actions that they have taken, or propose to take, especially in circumstances where the law may be unclear, outdated, or inconsistent;
  • advise taxpayers on how such tax liabilities and compliance costs can be mitigated by making reasonable and appropriate use of the legislative framework and the choices available, particularly where transactions or arrangements can reasonably be structured in different ways with different tax consequences; and
  • advise clients on how to resolve lawfully and effectively legitimate differences of view with the tax authorities (or sometimes, stakeholders or other taxpayers).
https://www.icaew.com/technical/tax/pcrt
That's it basically.

You do what you can for your clients

a) within the law

b) and within your own moral boundaries.



LeighW

4,407 posts

189 months

Tuesday 25th September 2018
quotequote all
Alex said:
Th Check Employment Status for Tax tool (CEST) is not fit for purpose.

CEST doesn’t align with case law.
CEST won't stand up in court and will have no bearing in a tax tribunal.
Interesting case HERE

Eric Mc

122,053 posts

266 months

Tuesday 25th September 2018
quotequote all
Nice to see HMRC being caught out by their own incompetence.

I like this comment -

‘If HMRC don’t understand their obligations under a system they’ve created, how can they expect businesses to get it right?’

kev1974

4,029 posts

130 months

Tuesday 25th September 2018
quotequote all
great link, thanks

LeighW

4,407 posts

189 months

Tuesday 25th September 2018
quotequote all
It's laughable really, what a shambles.

toon10

6,194 posts

158 months

Tuesday 25th September 2018
quotequote all
Interesting thread. One of my friends has just started up his own Limited company and has started his first contract. They pay his day rate straight into his company account every week.

He's effectively doing a technical IT role but with team lead responsibilities. I'm also not certain that he is in full control over how he delivers his results, rather being lead from the company. His accountant has told him he doesn't fall within IR35 but looking at my very limited knowledge on contracting, it looks like he's a definitely inside.

In the words of Mile Hunt "confused ,you will be..."

Deep Thought

35,843 posts

198 months

Tuesday 25th September 2018
quotequote all
LeighW said:
It's laughable really, what a shambles.
Yet sadly its the contractors who are being penalised for it generally, rather than HMRC.

Eric Mc

122,053 posts

266 months

Tuesday 25th September 2018
quotequote all
And the fact that even after 18 years HMRC struggles to interpret its own rules properly indicates what a shambles the current situation is.

Deep Thought

35,843 posts

198 months

Tuesday 25th September 2018
quotequote all
Eric Mc said:
And the fact that even after 18 years HMRC struggles to interpret its own rules properly indicates what a shambles the current situation is.
yes


Alex

9,975 posts

285 months

Tuesday 25th September 2018
quotequote all
LeighW said:
Interesting case HERE
Hilarious. HMRC can't even apply the rules correctly to their own freelancers.