
IR35 Investigations
The rules around IR35 are some of the most complex and controversial in the UK tax system. Designed to tackle “disguised employment,” IR35 applies when contractors work through limited companies but are, in practice, employees.
HMRC is actively investigating businesses and individuals under IR35, and the financial consequences can be significant. If you or your company is facing an IR35 investigation, you need expert support.
At Tax Investigation Helpline, we specialise in defending clients against HMRC
Why HMRC Investigates IR35 IR35 investigations are launched when HMRC suspects that a working arrangement has been incorrectly treated as self-employment rather than employment.
Triggers often include:
- Contractors working long-term for a single client.
- Employment-like arrangements (fixed hours, direct supervision, company benefits).
- Contracts that don’t reflect the true working relationship. - Inconsistencies between tax filings and working practices.
HMRC uses a combination of contract reviews, working practice assessments, and interviews with both contractors and end clients to build its case.
What’s at Stake in an IR35 Investigation The financial impact of being found inside IR35 can be devastating. Consequences include:
- Backdated income tax and National Insurance for several years.
- Employer’s National Insurance contributions, which can be charged to the company.
- Interest and penalties, significantly increasing the liability.
- Loss of expenses claims, such as travel and subsistence.
- Potential damage to your reputation with clients or suppliers.
For businesses that engage contractors, HMRC may also demand retrospective liabilities if it believes employment status was misclassified.
How We Help
At Tax Investigation Helpline, we know how HMRC approaches IR35 and how to challenge their assumptions. Our support includes:
- Immediate advice: We assess your contracts and working practices, identifying strengths and weaknesses in your case.
- Representation: We handle all communication with HMRC, protecting you from giving information that may be misinterpreted.
- Contract review and defence: We examine written agreements and working practices to demonstrate why IR35 should not apply.
- Negotiation: Where HMRC insists on liabilities, we work to reduce penalties and agree manageable settlements.
- Protecting your future: We advise on compliance going forward to minimise the risk of future IR35 challenges.
Our goal is to resolve disputes quickly and effectively, giving you peace of mind and protecting your financial security.
Common IR35 Triggers We See From our experience, HMRC often focuses on:
- Contractors with long-standing, exclusive client relationships.
- Evidence of control and supervision by the client.
- Lack of financial risk taken by the contractor.
- Contracts that are poorly worded or don’t match actual practices.
By addressing these areas proactively, we can strengthen your position before HMRC escalates the investigation.
Don’t Face HMRC Alone IR35 investigations can be complex, stressful, and drawn out. HMRC’s goal is to reclassify as many cases as possible to increase tax revenue. Without specialist representation, it’s easy to make admissions or provide evidence that strengthens HMRC’s case against you.
We have the knowledge and experience to challenge HMRC effectively. We’ve helped contractors, businesses, and agencies defend themselves in IR35 disputes, often securing reduced liabilities or proving that IR35 does not apply at all.
Contact Us Today
If you’ve been contacted by HMRC about IR35, act immediately. The earlier you seek help, the stronger your defence will be. Call Tax Investigation Helpline today for confidential, expert support. We’ll stand between you and HMRC, protecting your interests every step of the way.