Embarrassingly simple IR35/tax investigation question

[eek]

You are personally connected to the client via the intermediary report, so I think they still have all the required information, only twice removed. That said, it's also easier to conduct a compliance check at large clients post April and I expect HMRC will be doing a lot more of that (which gives them another, more direct, route).

All that said, I suppose it's only fair to point out that they have promised not to "focus" on historical cases; don't want to be accused of exaggerating the risk. But I would personally treat that guidance as worthless.

Not quite - the intermediary report doesn't cover the end client - it just asks the agency who it pays with the details of the intermediary limited company / umbrella and the NI number - so HMRC knows agency x has paid you.

The report (Employment intermediaries: report template - GOV.UK has the template) doesn't ask who the client who paid the agency is but it's possible that the client is also sending a report with the agencies details.

[Paralytic]

Comms which went out to contractors at one of the big banks stated that they had been reassured by HMRC they wouldn't actively be looking to pursue this sort of scenario. Which as we all know with the public sector, has turned out to be absolute bollocks.

Can you provide evidence of this? One agency told me this never happened in the public sector and I'd like to provide them with this information.

[Kanaiya]

Comms which went out to contractors at one of the big banks stated that they had been reassured by HMRC they wouldn't actively be looking to pursue this sort of scenario. Which as we all know with the public sector, has turned out to be absolute bollocks.

If they were to go down this avenue, they'd have thousands upon thousands of these cases to investigate, on day one, at this single client alone.

The cynic might say that this would be like all their Christmases had come at once.

On the flip side, HMRC are incredibly under-resourced, so its probably not as simple as being able to open cases against all involved.

Well I agree they are under resource. But after 6th April when client decided’s that they are inside ir35 it’s piece of cake for hmrc to send letters to all the contractors for historic enquiry. They will not have to fight as client itself has said they are inside.

HMRC have taken the decision that they will only use information resulting from these changes to open a new enquiry into earlier years if there is reason to suspect fraud or criminal behaviour. Further reading can be found

HMRC issue briefing: reform of off-payroll working rules - GOV.UK



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