IR35 letters going out to GlaxoSmithKline contractors

[northernladuk]

Article from Seb on Linkedin.

Seb Maley on LinkedIn: "Contractors currently or previously engaged by GlaxoSmithKline, please take note…

7 contractors have contacted us in the past few days after each receiving an identical letter from HMRC, in which they are told the tax office believes they are guilty of non-compliance, with regards to IR35.

In this letter, HMRC is working off the basis that these contractors are guilty until proven innocent - despite the fact there has not been a review of these contractors’ actual working practices at GSK.

The letter also states that the contractor must respond to HMRC or make the ‘deemed payment’ by 19th September - yet another example of the taxman’s policy of shooting first and asking questions later.

If you’ve received a letter, it’s important you seek the help of an IR35 expert, who will advise you on how to respond, deal with the matter throughout and, if necessary, represent you legally.

I'm assuming this post is also related although he doesn't name the company.

Myke Parrott on LinkedIn: "IR35 is coming!!!

This comment in the replies though...

Then IR35 does not currently apply and would not apply to that contract from last year. HMRC has also said, I believe, that it will not review contracts held before IR35 comes into effect, so either way it isn't an issue.

Jesus wept....

[jamesbrown]

Clearly the future. Fishing expeditions at large clients. Makes sense from an HMRC perspective. Also reinforces the risk of moving from outside to inside or permie at a large client post April 2020.

[BrilloPad]

Usual HMRC bullying and harrassment. I suppose they have done with the Loan Chargers so time to move on to the next lot of victims.

[headsy]

It's up to hmrc to prove you are so why respond, let them come after you and try and prove it don't give them the ammo

[northernladuk]

It's up to hmrc to prove you are so why respond, let them come after you and try and prove it don't give them the ammo

Awful advice.

[jamesbrown]

Awful advice.

Yup. The exact opposite. It's up to the tax payer (in this case, their company) to show that they've operated the rules correctly.

Best advice is to inform your professional representative immediately (or find one fast); indeed, if you have relevant insurance, that will be a requirement.

Never try to handle it yourself.

[jamesbrown]

Being picked up by the mainstream press now (paywall):

Subscribe to read | Financial Times

Not much new in that article though.

UK pharma group GlaxoSmithKline has found itself at the centre of a tax crackdown after authorities accused nearly 1,500 of its self-employed contractors of being “disguised employees”. HM Revenue & Customs sent identical letters last week to contractors working in various GSK departments including IT and biomedical sciences.

[wattaj]

I'm assuming this post is also related although he doesn't name the company.

Myke Parrott on LinkedIn: "IR35 is coming!!!

I may have been a little bit rough with the young lad, but I'm sure that he'll live.

[headsy]

Awful advice.

Not really. If you get this letter you are not obligated to do anything by law so you can ignore it. They use the word must which implies you are obligated to but you are not.

[cojak]

Not really. If you get this letter you are not obligated to do anything by law so you can ignore it. They use the word must which implies you are obligated to but you are not.

Can you post a link to prove this? This is HMRC we are talking about.