In April 2024, an IT solutions provider and client of IR35 Shield received notice of an HMRC Off-payroll compliance check. The review focused on establishing which party held responsibility for IR35 status determinations and whether those determinations were correct.
As a long-term client, they turned to IR35 Shield’s defence team for guidance. Over a 19-month period, which included intervals between HMRC’s responses, IR35 Shield managed the process, presented detailed evidence, and reassured HMRC that the company’s compliance processes were sound. By September 2025, the matter was closed with no further action.
The Head of Talent for our client said:
"We’re delighted with the result. From the first call, IR35 Shield gave us the confidence that this was going to be handled in the right way."
Dave Chaplin, CEO of IR35 Shield, says: "Our compliance-led approach leverages our extensive experience on the front line of IR35 tax tribunals, and this result demonstrates that our unique belt-and-braces approach proves to HMRC that our customers are operating compliantly."
How IR35 Shield helped
- Since 2021, the client has used IR35 Shield's software to assess all contractors' IR35 status, demonstrating consistent and robust compliance practices.
- When HMRC launched its check, IR35 Shield carried out fact-finding and contract analysis, aligned to the statute and case law.
- The team drafted formal responses to HMRC’s questions and cleared up confusion over which party was “the client” in terms of off-payroll working, and where the tax liability sat.
- As the check progressed, IR35 Shield liaised with HMRC and gave our client reassurance at every step.
"It was a relief to have IR35 Shield explain HMRC’s requests and cut through the jargon. They helped focus us on what really mattered."
The Challenge with HMRC
The compliance check was triggered after a customer of theirs was checked by HMRC, and confusion arose over which party was responsible for the status determinations. HMRC mistakenly believed that their customer was “the client” in terms of off-payroll working, raising concerns about potential tax risk.
The confusion was resolved after IR35 Shield stepped in to clarify the position in law and to demonstrate that our client’s compliance processes were both correct and robust.
"There were some concerns at first as HMRC’s letters looked intimidating, raising doubts about our IR35 compliance, but IR35 Shield broke everything down and guided us through it."
Navigating HMRC’s requests
As the case progressed, HMRC issued multiple information requests as part of their standard review process. IR35 Shield responded with precise, evidence-backed answers, ensuring the customer's compliance was clearly demonstrated.
Dave Chaplin, CEO of IR35 Shield, says: "This case shows why professional representation matters. HMRC letters can contain unnecessary deadlines and be difficult to interpret – our role is to gather key evidence, keep clients calm, and ensure the right information is presented."
The outcome
In September 2025, HMRC confirmed the compliance check was closed. No further action was required.
"We couldn’t have asked for a better outcome. IR35 Shield managed everything professionally and gave the business clear direction from start to finish."
Lessons learned
- Domino effect: HMRC checks of third parties can trigger HMRC checks further down the supply chain.
- Evidence is key: Contractual clarity and audit trails help close down investigations.
- Expert guidance saves time and stress: Having seasoned advisors avoids unnecessary back-and-forth.
Need help?
IR35 Shield has helped multiple clients navigate their compliance checks with very successful results.
If HMRC contacts your business, don’t face it alone. Book a free consultation with IR35 Shield’s team today and put our tribunal-standard expertise to work for you.
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