A professional IT consultant has defeated HMRC in an IR35 tribunal case, which has again highlighted many of the concerns surrounding IR35. Richard Alcock successfully appealed a HMRC tax bill concerning engagements entered into by his limited company, RALC Consulting Ltd, between 2010 and 2015.…
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The decision of businesses such as RBS, Lloyds, Tesco Bank and Morgan Stanley to adopt a blanket policy on limited company contractors has been heavily criticised by Industry bodies. Lobbyists are calling on Parliament to address the issue and hold HMRC to account.…
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BBC presenter Christa Ackroyd has lost her appeal against an IR35 ruling from February 2018. The Upper Tribunal upheld the First Tier Tribunal’s (FTT) ruling that Ackroyd was subject to an ultimate right of control from the BBC and was, therefore, an employee.…
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Lloyds are the latest banking group to adopt a “no PSC” policy, meaning the contractors they engage won’t be able to work through a personal service company or limited company. On Tuesday, the company informed thousands of its contingent staff that they would lose their contracts if they didn’t join a PAYE umbrella company, which would see their pay reduced by around 30%.…
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Three BBC presenters have lost an IR35 case against HMRC after the High Court ruled that their relationship with the corporation was one of employment.
Presenters Joanna Gosling, David Eades and Tim Willcox were pursued by HMRC as part of a crackdown on the BBC’s use of personal service companies (PSCs).…
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In the event of an IR35 investigation, many contractors find themselves without any paperwork to support their daily working practices. HMRC will look for proof that the contractor is subject to direction and control, or that they’re part and parcel of the client company.…
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UK pharma giant GlaxoSmithKline has found itself targeted by authorities after HMRC sent nearly 1,500 of its limited company contractors identical letters. The letters stated that in HMRC’s view, their contracts were caught by IR35. Contractors who don’t agree with this assessment were informed they must either write to HMRC, supplying them with supporting evidence of why they are not caught under the rules, or else work out their appropriate PAYE tax and NICs for the 2018/19 tax year.…
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Following the publication of their consultation, the government have released the Off-payroll Draft Legislation as part of the Finance Bill 2019-2020. The legislation will come into effect in both the public and private sectors from April 2020. Although the consultation sought to address concerns in several areas, the general consensus is that the resulting legislation does little to address these key issues, which are as follows:
- The definition of a small business for the purpose of exemption
- Non-compliance in the labour supply chain
- Clients making non-compliant blanket determinations/ NI deductions
- Giving workers and fee-payers an independent means of challenging status determinations made by client organisations.
The actor Robert Glenister has spoken out against the devastating impact of being investigated by HMRC. Best known for his roles in high profile TV dramas Spooks and Hustle, Glenister has opened up to the press after struggling with severe anxiety and depression as the result of his long-running tax dispute with HM Revenue & Customs.…
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