Just wondering what everyone thinks of this customer segmentation idea, as covered in today's article on HMRC's IR35 forum minutes on customer segmentation, as a way forward for identifying 'high' and 'low' risk IR35 contracts?
HMRC say they won't publish 'detailed risk criteria' but are aiming to issue guidance that will make their selection criteria (for which cases to review) more 'transparent' and enable contractors to ascertain where their contracts fall within the spectrum.
How does everyone see this panning out? Could it tackle the 'mistrust, inefficiency and inconsistency' criticisms leveled at the taxman over their handling of IR35 so far?There was a discussion about whether there should be greater transparency about HMRC's criteria for risk assessment, and how it selected cases for IR35 reviews. HMRC said it was not possible to publish its detailed risk criteria, but it agreed that providing greater transparency about the process might provide greater reassurance to those fearful of being subject to review on a purely random basis. This was precisely why HMRC believed that customer segmentation was the best way for reforming the administration of IR35; it would enable individuals to identify whether HMRC considered them to be low, medium or high risk.
HM Revenue & Customs: IR35 Forum - Minutes
Curious to know everyone's thoughts?