Why does Hector and Co lose so many IR35 cases

[pisces]

Apparantly the success rate for the HMRC is less than 1% for IR35 cases. At that rate is almost seems pointless for them to bother anymore.

Considering that they more than likely would go after people that they are more confident of winning cases against why is the figure so low? I'm sure they don't just pick random cases where the odds are lower than normal.

Seems odd to me that they can't prove their own legislation in a court of law

[Troll]

Turning the question around...why do so many people (especially noobs) worry about IR35? and believe it or not I know people who actually pay IR35 money "to avoid the hassle"

[ASB]

Apparantly the success rate for the HMRC is less than 1% for IR35 cases. At that rate is almost seems pointless for them to bother anymore.

Considering that they more than likely would go after people that they are more confident of winning cases against why is the figure so low? I'm sure they don't just pick random cases where the odds are lower than normal.

Seems odd to me that they can't prove their own legislation in a court of law

Very few cases go anywhere near a court. That is all anybody counts as "lost".

What you do know is that there have been 'x' contested cases and only a few has resulted in the win for the revenue (there are some stats of those the pcg has been involved in).

What you don't know is the number of people who havbe either paid up voluntarily, or conceeded the demand when it arrived. This is almost certainly considerably higher than the number of cases contested in anyway. I suspect the overall figures are rather more like the IR collects on 90% of the determinations it issues.

[ratewhore]

I suspect the overall figures are rather more like the IR collects on 90% of the determinations it issues.

What makes you say that?

[oracleslave]

I suspect the overall figures are rather more like the IR collects on 90% of the determinations it issues.

I suspect that stat is complete and utter bollox

[Ardesco]

I suspect that stat is complete and utter bollox

I suspect that like 84.2% of statistics that one is made up on the spot

[Sockpuppet]

Has anyone thought that all HMRC employees are not evil and they may like us contractors so helpfully just feck the investigation up for us.

See, they really are nice people.

[r0bly0ns]

The simple fact that the legislation exists has convinved how many thousands of people to go through a brolly and pay PAYE?

[Tensai]

I suspect that stat is complete and utter bollox

Quite possibly. Would it be possible to get an accurate answer under the FOI act? Anyone currently on the bench fancy killing some time and finding out...?

[malvolio]

Quite possibly. Would it be possible to get an accurate answer under the FOI act? Anyone currently on the bench fancy killing some time and finding out...?

It's been asked for several times, including at least once in the House ny Mark Prisk. HMCR's offical answer is that they don't keep such statistics...

As to why they lose so many cases, it's because it's a bad law poorly worded. Snag is they can't write a law that says "All IT Contractors will pay 20% too much tax" - although it doesn't seem to stop them trying...