If you are identified as being caught within IR35 you do not necessarily have to take their ruling lying down. There are in-fact ways to appeal to their decision.
Alternative Dispute Resolution (ADR)
The first step of appeal is via HMRC’s ‘Alternative Dispute Resolution’ (ADR) service where the case will be independently heard by another inspector, and an impartial HMRC official with no involvement in your case will mediate.
We have found the ADR process to be worthwhile, but should the appeal not be resolved, this can be progressed to Tax Tribunal and further, the Civil Courts.
IR35 Tribunal
You can escalate your case to an IR35 tribunal, where you can appeal a decision made by HMRC in court. Given the costs associated with doing so many contractors opt for IR35 insurance such as tax liability cover, which covers legal advice and representation fees as well as the liabilities found owing.
In recent years, contractors have challenged HMRC in an IR35 tribunal have, on the whole, been successful. For example, HMRC has won just one in fourteen IR35 tribunal cases outright since 2010.
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