IR35 Scaremongering?

[mudskipper]

HMRC rejects claim that new IR35 enquiries run into the thousands :: Contractor UK

I, like many others, will play it safe and continue my insurance, but is the perception of the risk of investigation greater than the risk itself? Is it in the PCG's interest to make us scared of the bogeyman?

Who's been investigated? Or knows someone who's been investigated?

[malvolio]

HMRC rejects claim that new IR35 enquiries run into the thousands :: Contractor UK

I, like many others, will play it safe and continue my insurance, but is the perception of the risk of investigation greater than the risk itself? Is it in the PCG's interest to make us scared of the bogeyman?

Who's been investigated? Or knows someone who's been investigated?

Read the original article. It was a bit of a throwaway line in a discussion on increasing cases, and the number quoted was "about 2000", not "thousands". The bottom line is that PCG have seen a 40% increase in PEI claims this year. The actual target of 230 new investigations a year is scary enough, given they are rather more adept at choosing their targets.

[northernladuk]

Bearing in mind PCG make money selling protection (insurance or whatever) it seems a pretty serious accusation this. It isn't just scaremongering, it is making people part with cash on false information.

Am sure they will respond with clarrification soon though.

[administrator]

Read the original article. It was a bit of a throwaway line in a discussion on increasing cases, and the number quoted was "about 2000", not "thousands". The bottom line is that PCG have seen a 40% increase in PEI claims this year. The actual target of 230 new investigations a year is scary enough, given they are rather more adept at choosing their targets.

The actual quote from the article is:

If some of this activity seems behind the scenes and almost intangible, then we can point to the fact that most commentators believe some 2,000 enquiries have been started since May of this year, which is almost a hundred-fold increase over two years ago – and that has occurred in only half a tax year!

So not sure where you come up with the "about 2000", Mal, the article clearly states "that most commentators believe some 2,000 enquiries have been started" yet HMRC clearly refute that claim. Also 2000 is thousands - two of them to be precise Might be worth understanding who "most commentators" are I suppose.

The figure "40% increase" from you above can be taken with a pinch of salt as well if not backed up - from 10 claims to 14 is a 40% increase. Do you have any figures to hand as to actual numbers as that would surely help clarify the situation.

[malvolio]

The figure "40% increase" from you above can be taken with a pinch of salt as well if not backed up - from 10 claims to 14 is a 40% increase. Do you have any figures to hand as to actual numbers as that would surely help clarify the situation.

Nope, I don't have access to that kind of data. However I understand PCG will be responding in due course, I'm not going to try and preempt them.

Also, while not wanting to debate the point to death, there is a semantic difference between "2000" and "thousands", in the same way that there is a semantic difference between Brown's "single percentage point rise to 11%" and "a 10% rise"...

[administrator]

Nope, I don't have access to that kind of data. However I understand PCG will be responding in due course, I'm not going to try and preempt them.

Also, while not wanting to debate the point to death, there is a semantic difference between "2000" and "thousands", in the same way that there is a semantic difference between Brown's "single percentage point rise to 11%" and "a 10% rise"...

Thanks Mal, looking forward to having this clarified. Lies damned lies and statistics! Agree that a lot depends on how these figures are chopped which is why we raised the point.

[administrator]

Here is the follow-up:
PCG removes claim of '2,000 IR35 enquiries since May' :: Contractor UK

[meanttobeworking]

Very disappointing that is was done in the first place, with the "explanation" seemingly a poor attempt to shift the blame. As a PCG member, they have gone down in my estimation considerably.

[northernladuk]

Very disappointing that is was done in the first place, with the "explanation" seemingly a poor attempt to shift the blame. As a PCG member, they have gone down in my estimation considerably.

shift the blame to someone that sells insurance to cover this as well.......

[meanttobeworking]

I genuinely can't believe they think that response is acceptable and everyone is just going to say "oh right, ok, that makes sense". It's no different to when #1 son gets told off for something and says "#1 daughter told me to do it"...