FREQUENTLY ASKED QUESTIONS
1 Why can Accountax Consulting Ltd offer this IR35 Guarantee when other people don't go that far?
2 If I get a challenge, why are Accountax so confident of being able to defend me?
3 Why is the Guarantee so expensive?
4 If the Accountax contract is so good, why do we have
to pay for a guarantee at all?
5 If Accountax ultimately fails to defend IR35 exempt status, what exactly does the Guarantee cover?
6 Which contract does Accountax need to see to be able to offer this Guarantee?
7 Will my application be accepted?
8 Why might my application be rejected?
9 What happens if we do not have to make a claim on the Guarantee?
10 If I get investigated in year 2 but I have not renewed the Guarantee, what happens then?
11 If I renew the Guarantee for a second year and then get an IR35 challenge, what does the Guarantee cover?
12 But what about the earlier years if Accountax loses?
13 How do I know that Accountax Consulting Ltd will honour their IR35 Guarantee if they ultimately lose the argument?
14 Where does my Guarantee payment go?
15 What do I need to do now?
16 When does the Guarantee actually commence?
Please note the IR35 guarantee and fee protection plan are
not insurances, and they are not underwritten by an insurance
company. These products are the Accountax guarantee of the quality
and expertise of Accountax's tax advice.
1. Why can Accountax Consulting Ltd offer this IR35 Guarantee when other people don't go that far?
Clients need IR35 peace of mind and Accountax is responding to that need. Accountax bases its products and services on real life practical experience of dealing with technical arguments with the Revenue and Contributions Agency and our approach to IR35 is sound. We are able to offer this unique IR35 Guarantee because we are happy that our contracts work. This is our specialist area. In a recent Industrial Tribunal an Accountax Self Employed Contract was upheld as giving rise to genuine self employment and this was in fact a very simplified version of the contracts that we issue for IR35. Quite simply this Guarantee backs up our
professionalism, our approach and our success rate.  Back
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2. If I get a challenge, why are Accountax so confident of being able to defend me?
The owners and staff of Accountax are ex-Revenue and Contributions Agency Inspectors and have many years' experience of handling status disputes. It should be remembered that IR35 is a status dispute by another name. Accountax has advised, either directly or indirectly, on over 800 Revenue disputes and have lost 4 or 5 cases. This record speaks for itself and hence Accountax are happy to offer this unique Guarantee. Very few advisors have in depth experience of handling Revenue challenges in the real world. We do. You will have the full force of Accountax's expertise. Back
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3. Why is the Guarantee so expensive?
Well, is it? The cost of the Guarantee is determined by the level of turnover of your personal service business and the overwhelming majority of clients will pay either the lower or middle tier of fees. This represents the equivalent of about 3 days' work for many contractors and as such the Guarantee is not really expensive at all. Considering the peace of mind offered it is a very small price to pay particularly bearing in mind that the Guarantee costs can be paid over 3 months on a standing order. If you already have the standard Accountax IR35 Fee Protection in place you may claim a discount of £249 + VAT. Back
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4. If the Accountax contract is so good, why do we have to pay for a guarantee at all?
Because you want IR35 peace of mind knowing the Guarantee covers all the extra IR35 Tax, National Insurance, Interest and Penalties. The simple fact is the Revenue have made it very clear that IR35 is going to be one of their major tax compliance initiatives and no matter how "safe" you think you are that will not stop the Revenue examining your tax affairs in great detail. Even if you can show that you survive IR35 you will undoubtedly run up very substantial professional fees in the process. You should remember that the Accountax IR35 Guarantee covers all of the professional costs of Accountax in defending your IR35 exempt status including technical arguments and meetings with the Revenue, arguing the case on your behalf and taking the case to the Commissioners (Tax Tribunal) on appeal. If your regular Accountant is able and willing to defend you then there is no question that substantial professional fees will be run up in the process but all our fees are all covered under this Guarantee. Back
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5. If Accountax ultimately fails to defend IR35 exempt status, what exactly does the Guarantee cover?
Not only all of the professional fees of Accountax in defending your case but more importantly the extra Tax, National Insurance, Interest and Penalties which arise from you being caught by IR35. No clever small print and we do not place a limit on the Tax, National Insurance, Interest and Penalties which the Guarantee covers for any given year. Back
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6. Which contract does Accountax need to see to be able to offer this Guarantee?
This is important. We are only interested in the contract your business signs with the next person up the chain i.e. your client. Typically this is an Agency. What the Agency and the End User agree and contract between themselves is of little concern to us. So this Guarantee is available so long as your business uses either the Standard Accountax IR35 proof contract, or a contract we have approved. Back
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7. Will my application be accepted?
Almost certainly yes. We do need you to complete a simple Application Form which is enclosed with this pack and we will give it immediate attention at the office. If for some reason we cannot offer the Guarantee, then we will tell you and explain why. Back
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8. Why might my application be rejected?
This Guarantee is primarily designed for the standard Accountax
IR35 proof contract. We are confident in our own products and are able
to guarantee them but there are many poor contracts in circulation which
will not defeat IR35. If you are not using the standard Accountax Contract
we will have to consider carefully whether we can still offer the guarantee
on the contract you are using and we do this through the process of
our IR35 Contract Review service. For a fee of £299 + VAT we will review
your existing contract and tell you whether it will pass or fail IR35
and why. If it passes IR35, then we will be happy to offer our Guarantee
and we will also give you a credit of £100 + VAT against the cost of
the Guarantee. If your existing contract fails IR35 and we are not able
to offer the Guarantee, then we will tell you and you may be able to
renegotiate certain terms and conditions in your contract whereby we
can then offer you the Guarantee. Back
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9. What happens if we do not have to make a claim on the Guarantee?
Your Guarantee payment covers you for a period of 12 months from the date on your application form. If you do not need to make a claim on the Guarantee within the first 12 months then that's great news for everyone. If you then wish to renew your Guarantee for a second year you will complete a simple application form and submit it to us. Back
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10. If I get investigated in year 2 but I have not renewed the Guarantee, what happens then?
We offer this Guarantee on a year by year basis and if you decide not to renew the Guarantee in year 2 but then get challenged by the Revenue that is your risk. Accountax will still represent you but would charge for their advice and help. Back
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11. If I renew the Guarantee for a second year and then get an IR35 challenge, what does the Guarantee cover?
So long as you have a current Guarantee in place we will defend your exempt IR35 status within the normal terms of the Guarantee. If we win the dispute then that is the end of the matter. If we lose the dispute, then under the Guarantee terms and conditions we will pay out all of the extra IR35 Tax, National Insurance, Interest and Penalties in respect of the current year for which you have the Guarantee. Back
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12. But what about the earlier years if Accountax loses?
We are pleased to tell you that if in a second or subsequent year you want to have the benefit of the full guarantee for previous years, then this will be available for an additional cost. In other words when you consider renewing your Guarantee in year 2, if you would like to have the benefit of the full Guarantee for the both the present and previous years then there will be a small supplement to pay. It is of course your choice. Back
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13. How do I know that Accountax Consulting Ltd will honour their IR35 Guarantee if they ultimately lose the argument?
This is a very fair point and all we can do to try to satisfy
you is point out that Accountax and its associated businesses including
Accountax UK Ltd (trading since 1998) has established
a rock solid reputation. For example over 800 businesses (the majority
of them being professional firms of Accountants) have joined the Accountax
Fighting Fund and subscribe to our advice and information services.
Accountax Consulting Ltd and its directors have advised major plc clients
as well as the accountancy and contracting professions. Accountax is
owned and staffed by former tax inspectors and is very well known on
the professional lecture circuit and in the field of tax consultancy.
As such Accountax has a good reputation which it cannot afford to jeopardize.
Whenever Accountax launches a new product it is carefully researched
and thought through to make sure that it underlines the quality of Accountax
and its reputation in the market place. In the final analysis of course
it is your choice as a consumer as to whether you want to purchase this
Guarantee or not and there is certainly no pressure on you to do so.
But we do offer IR35 peace of mind at a very modest cost.
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14. Where does my Guarantee payment go?
All Guarantee payments, less operational expenses are retained in the bank to build up the 'war chest' for when clients get an IR35 challenge. Back
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15. What do I need to do now?
Please review the enclosed documentation and complete the simple plain English Application Form having first read the Terms and Conditions of the Guarantee. If you want to proceed but you do not have a standard Accountax IR35 proof contract and you would like us to review your existing contract (to see whether it will pass or fail IR35 and whether we can offer the IR35 Guarantee) then please attach it with your application form. Tick the appropriate box and we will carry out the initial review for you. Our Contract Review service is highly regarded (see unsolicited testimonial below) and we turn them around in a maximum of 5 working days. Back
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16. When does the Guarantee actually commence?
We will write to you and confirm that the Guarantee is in place as soon as we have examined your application and any accompanying contracts. The Guarantee runs for a full 12 months from the date of your application but please note you must wait for us to write to you and officially confirm that your application has been accepted before the Guarantee kicks in.Back
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The best IR35 proof contracts based on our vast experience of winning ‘status’ disputes.