HMRC updates guidance
I'm highlighting this following agencies attempt to indemnify themselves against HMRC enforcement.
If HMRC does enforce this AND you have one of those dodgy contracts, you could be in hot water through no fault of your own (as it's the responsibility of the PSB to correctly assess contracts).
A service provider to contractors says public authorities are already skewing the outcomes of the ESS (also known as the IR35 digital tool), by getting an ‘outside’ IR35 result, and then going off to fit such working practices around an engagement that previously was ‘inside.’
“If we had any faith in the results of some IR35 assessments being carried out by the public sector, [then that would be a good start],” the service provider’s boss said.
“We are seeing some perverse assessments and our conclusion is often the public sector body has had a 'second go' [with the ESS] and saved themselves 20-25% costs. I suspect they are counting on the usual lack of enforcement by HMRC.”
“If we had any faith in the results of some IR35 assessments being carried out by the public sector, [then that would be a good start],” the service provider’s boss said.
“We are seeing some perverse assessments and our conclusion is often the public sector body has had a 'second go' [with the ESS] and saved themselves 20-25% costs. I suspect they are counting on the usual lack of enforcement by HMRC.”
If HMRC does enforce this AND you have one of those dodgy contracts, you could be in hot water through no fault of your own (as it's the responsibility of the PSB to correctly assess contracts).
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