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IR35 tax refund victory

A contractor has successfully managed to claim back previously paid IR35 tax from the Inland Revenue.

This is the first successful retrospective claim for Qdos Consulting whose ‘Out of the Box’ product was recently launched.

This could pave the way for many other contractors who previously paid IR35 tax unnecessarily in the past.

Keith Preece, Senior Tax Consultant at QDos:

After six months of claiming, writing, complaining to Area, complaining to Region, and tearing of hair, the Revenue has finally accepted our retrospective claim, on behalf of an IT contractor, that one of his engagements falls outside of IR35.

This is despite the fact that the contractor concerned originally ticked the box on the form P35 to say he was caught by IR35 and paid Income Tax and NIC under the “deemed payment” provisions.

...the Revenue has accepted that a retrospective claim to be outside of IR35 is permissible under the Taxes Acts.

Keith Preece - Qdos Consulting

This is a victory in two parts.

  • Firstly, the Revenue has accepted that a retrospective claim to be outside of IR35 is permissible under the Taxes Acts.
  • Secondly, despite the fact that we had to wait while the Revenue indulged in some tedious buck passing, eventually they appear to have accepted the revised IR35 position on the basis of the information given in the initial claim, without taking up our invitation to make further enquiries.

Published: Monday, 23 August 2004

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