Hmrc ir35 tax yield figures - taking freelancers as mugs

**malvolio** · 22 September 2011, 15:55

But bear in mind that those are the numbers for investigated cases. How much nmore tax is being paid needlessly by people who can't be ar, ermm, bothered to find out how it works, I wonder?

**v8gaz** · 22 September 2011, 16:00

I have a quick question for those of you who are happily paying IR35 voluntarily.

ARE YOU MENTAL?

**bobspud** · 22 September 2011, 16:47

Actually, I find it more concerning that many first time contractors are so put off by the monster of IR35, that they are attracted into umbrella schemes that increase their take home yield by encouraging them to claim subsistence cash that could seriously cause them issues if they were investigated...

**mudskipper** · 22 September 2011, 17:17

Response:

HMRC confirms that it holds the information requested.The number of reviews opened by HMRC for the last five years, where the intermediaries legislation (more commonly referred to as IR35) was identified as a risk, is as follows:

6 April 2006 to 5 April 2007 is 158
6 April 2007 to 5 April 2008 is 104
6 April 2008 to 5 April 2009 is 25
6 April 2009 to 5 April 2010 is 12
6 April 2010 to 5 April 2011 is 23

The tax yield recovered in relation to these reviews cannot be indentified. This is because a review is not always concluded in the same year that it was opened. However, HMRC can provide the tax yield received for the requested years, which is:

6 April 2006 to 5 April 2007 = £1,906,619
6 April 2007 to 5 April 2008 = £1,730,640
6 April 2008 to 5 April 2009 = £1,430,358
6 April 2009 to 5 April 2010 = £155,502
6 April 2010 to 5 April 2011 = £219,180

- 1000s of us paying c £200 a year for insurance - far more than HMRC have raised.

**tarbera** · 22 September 2011, 19:18

Mug

Originally posted by k2p2 View Post

- 1000s of us paying c £200 a year for insurance - far more than HMRC have raised.

I feel the end of insurance policy's as we know it - why bother

**malvolio** · 22 September 2011, 19:55

Originally posted by tarbera View Post

I feel the end of insurance policy's as we know it - why bother

You know the answer to that. Because there are many other challenges to come. If something like the current PCG had existed in 1999, IR35 would never have happened. Whatever happens to IR35 in the next year or so, there are an awful lot of other ways for Hector to mess up your life for a year or three.

**Wanderer** · 22 September 2011, 21:19

Originally posted by v8gaz View Post

I have a quick question for those of you who are happily paying IR35 voluntarily. ARE YOU MENTAL?

It may sound odd to a hardened contractor but a lot of people can't live with the fear of a 6 year retrospective IR35 inquiry which would mean that they could be landed with a big tax bill which would make them lose their house. So they prefer to take the safe option and declare their income as IR35 caught and live a quiet life.

**tarbera** · 22 September 2011, 21:20

IR35 is dead

Originally posted by malvolio View Post

You know the answer to that. Because there are many other challenges to come. If something like the current PCG had existed in 1999, IR35 would never have happened. Whatever happens to IR35 in the next year or so, there are an awful lot of other ways for Hector to mess up your life for a year or three.

lets move on to the new model

**centurian** · 23 September 2011, 05:34

A low chance of investigation is of little comfort if you are unfortunate enough to be nailed.

It's little consolation to those affected by BN66 that many other schemes have not been investigated - in fact it seems to piss them off even more, that they are being singled out.

Hanging on for 6 years to find out whether you get to keep the cash is too long for some.

Hmrc ir35 tax yield figures - taking freelancers as mugs