Archive IR35 Guru - ContractingWISE

Home office receives £33.5million IR35 bill

Home Office receives £33.5million IR35 bill

By | IR35, IR35 Guru, News | No Comments

The Home Office has been handed a £33.5million IR35 bill by HMRC after a review of its off-payroll compliance process was found to be “careless”. The tax bill was revealed in the department’s recently published 2020-2021 annual report and accounts.

The document reveals that HMRC placed the Home Office under review in 2018 following its implementation of the change to the off-payroll rules in the public sector that came into effect in 2017.…

READ MORE
Preparing for IR35: Will HMRC’s CEST tool deliver a reliable verdict?

Preparing for IR35: Will HMRC’s CEST tool deliver a reliable verdict?

By | IR35, IR35 Guru, News, Preparing for IR35 | No Comments

New government monitoring data shows that HMRC’s CEST tool delivers an inconclusive result a worrying 20% of the time. Between November 2019 and November 2020, CEST failed to deliver a verdict in 188,719 of cases out of 975,416. With reform fast approaching, we take a look at this ‘black hole’ in the tool’s logic and what it says about its’ ability to deliver a reliable verdict.…

READ MORE
HMRC Reopens IR35 Investigations

HMRC Reopens IR35 Investigations

By | COVID-19, IR35, News | No Comments

It’s been reliably reported that HMRC have resumed IR35 enquiries that were put on hold because of the Covid-19 pandemic. In recent weeks, contractors who were being investigated pre-pandemic received letters from HMRC, asking if they were ready for the investigation to resume, and giving them chance to put forward any circumstances that would make this difficult.…

READ MORE
IR35 Delay Cost £740m, says Sunak

IR35 Delay Cost £740m, says Sunak

By | COVID-19, IR35, IR35 Guru, News | No Comments

Last week Chancellor Rishi Sunak delivered the Spending Review 2020. The document contained a calculation that his decision to delay private sector IR35 reform by one year has cost the government £740million in lost tax revenue. Contractor bodies have expressed shock that the government is placing this projected loss at the feet of limited company contractors who they suspect of operating as employees.…

READ MORE
Will the Government Delay IR35 Reform Again?

Will the Government Delay IR35 Reform Again?

By | COVID-19, IR35, News | No Comments

When it comes to contractor concerns, a recent industry poll showed that 62% view IR35 reform as a greater threat than Covid-19 and Brexit combined. This could explain the slow uptake with self-employment, despite the spate of recent redundancies. In times of economic crisis, entrepreneurship and microbusinesses have traditionally played a critical part in economic recovery, helping to establish new markets and increasing flexible access to skills.…

READ MORE