S44 - aligning inside and outside IR35 contracts for tax and NIC

[cojak]

On the 14th July, the FTT, confirmed that s44 applies to Limited companies.

https://www.the-cover.com/articles/s...ttack-for-hmrc

Where HMRC can successfully argue that s44 applies, the intermediary (in this case K5K) providing the worker(s) will be responsible for ensuring all payments made to the individuals are subject to tax and NIC.

This is the same tactic as MSCP legislation - HMRC are picking on agencies rather than the individual Ltds with IR35.

K5K had sloppy contracts and couldn’t be bothered changing those contracts to the changing status of their workers.

So I guess the moral of the story is read the contract and keep a record of it for 6 years, in case HMRC want to challenge.

I’m not sure why there hasn’t been more about this in the media or from agencies complaining about it, but there you go.

See here for the Section 44 legislation: https://www.legislation.gov.uk/ukpga/2003/1/section/44

And see here for the judgement:
https://files.pumptax.com/wp-content...d-14.07.22.pdf

[Guy Incognito]

Judge Heidi Poon