Wrong IR35 Advice
IR35 is one of the most complex and controversial areas of tax law, affecting contractors, businesses, and agencies alike. Many people rely on their accountants to provide clear and accurate guidance — but unfortunately, bad advice on IR35 is common.
When accountants misinterpret the rules, their clients are left exposed to HMRC investigations, penalties, and financial loss.
How Wrong IR35 Advice Happens
IR35 rules are difficult to navigate, and even experienced accountants can get them wrong. Common mistakes include:
- Advising contractors that they are outside IR35 when they are not.
- Misinterpreting contracts and failing to assess actual working practices.
- Overlooking the role of supervision, direction, and control in determining status.
- Ignoring the significance of substitution clauses or mutuality of obligation.
- Providing generic advice instead of tailored assessments.
These errors often leave contractors and businesses vulnerable to costly HMRC investigations.
What’s at Risk The risks of wrong IR35 advice are significant:
- Backdated tax bills for income tax and National Insurance.
- Employer’s National Insurance liabilities, charged to the business or agency.
- Penalties and interest, adding to the financial burden.
- Loss of expense claims, such as travel and subsistence.
- Damage to reputation, affecting relationships with clients or agencies.
In some cases, businesses have faced bankruptcy because of liabilities caused by poor IR35 advice.
How We Help
At Tax Investigation Helpline, we understand IR35 inside and out. We provide specialist support for contractors and businesses who have been misadvised by their accountants. Our service includes:
- Independent review: We analyse contracts and working practices to assess your true IR35 position.
- HMRC representation: We manage all correspondence with HMRC, protecting you from further risk.
- Correction of advice: We put in place the right strategies to ensure compliance going forward.
- Negotiation: Where liabilities exist, we work to reduce penalties and agree manageable settlements.
- Accountability: We help you hold negligent accountants to account for the damage they’ve caused.
Our goal is to defend your position and safeguard your financial future.
Common Issues We See From our experience, the most frequent problems caused by wrong IR35 advice include:
- Contractors wrongly told they were outside IR35 and later hit with huge tax bills.
- End clients and agencies misadvised on their responsibilities under the off-payroll rules.
- Accountants failing to consider working practices, focusing only on contracts.
- Poor advice leading to lost opportunities to challenge HMRC’s assumptions.
- Failure to plan for compliance under the new off-payroll working rules.
These mistakes can be devastating — but they can be challenged with the right expertise.
Don’t Let Wrong IR35 Advice Cost You If your accountant has given you bad advice on IR35, you may feel angry and uncertain about the future. But you don’t have to face HMRC alone.
We’ve helped contractors, agencies, and businesses successfully resolve IR35 disputes caused by negligent accountancy advice. With our support, you can reduce liabilities, correct mistakes, and pursue accountability.
Contact Us Today
If HMRC has contacted you about IR35, or if you suspect your accountant has misadvised you, call Tax Investigation Helpline today. We’ll review your case, defend your position, and hold your accountant responsible. Don’t let poor advice threaten your financial security.
