HMRC incentivise inspectors to catch IR35 avoiders

[Jog On]

If you leave it for the Inland Revenue auditor or Tax Inspector to make the decision, then generally they will argue that the individuals are employees as they get extra credit for "finding these errors".

http://www.out-law.com/page-3976

Sorry if this is old news - makes me think of traffic wardens

[ChimpMaster]

That's a very generic and unhelpful article from someone who supposedly worked as an inspector. You'd think he might have a more in depth perspective on the subject matter.

[Moscow Mule]

That's a very generic and unhelpful article from someone who supposedly worked as an inspector. You'd think he might have a more in depth perspective on the subject matter.

It was also written in 2003 - perhaps a touch out of date?

[Jog On]

That's a very generic and unhelpful article from someone who supposedly worked as an inspector. You'd think he might have a more in depth perspective on the subject matter.

It was also written in 2003 - perhaps a touch out of date?

The point I am making is that IR35 inspectors are on commission incentives

[malvolio]

No. Inspectors are on performance bonuses, one of the KPI's for which is the amount of tax recovered (or should that be burgled?) as a result of their work. It's not specifically about IR35.

[moorfield]

No. Inspectors are on performance bonuses, one of the KPI's for which is the amount of tax recovered (or should that be burgled?) as a result of their work. It's not specifically about IR35.

If I was an inspector on an incentive scheme I wouldn't waste my time chasing IR35 cases with the murky history that it has. I'd be after all those shifty amateur BTL landlords - easy targets!

[meridian]

The easy targets are amateur anyones, whether BTL or IR35 - inspectors don't want cases going to court as it means longer case times and time spent not on audits - as malvolio says, there are KPIs to achieve, which also include the number of cases completed.

From a revenue perspective the easiest case is an IR35 inspection that doesn't get argued - all they have to do is check the accounts, send a letter, assess the tax. Don't even have to leave the office for that.

IR35 is a non-starter only if you judge the win/lose ratio in courts, but how many cases are settled before it gets that far? What's the win/lose ratio from the Revenue perspective (i.e. all cases investigated, not just those that get to court)?