HMRC Q&A on IR35 on ContractorUK

[saptastic]

https://www.contractoruk.com/news/00...ing_rules.html


"Some contractors have been concerned that HMRC will open investigations into previous tax years if the off-payroll working rules apply and they are found to be employed for tax purposes.

HMRC has already committed to not using information resulting from the changes to the rules to open a new compliance check into Personal Service Companies for tax years prior to 6 April 2021, unless there is reason to suspect fraud or criminal behaviour. This commitment is set out clearly in our guidance.

In addition to this commitment, and in response to the review, HMRC announced that it will take a ‘light-touch’ approach to penalties and customers will not have to pay penalties for inaccuracies relating to off-payroll in the first year, except in cases of deliberate non-compliance. We don’t want to charge penalties, we just want to help organisations get the rules right".

also

"We have been working with engagers to make sure they assess their contractors correctly. While it’s reasonable for large numbers of people in similar roles to have similar arrangements, we’ve been clear that engagers must not make blanket assessments and the legislation requires that those making determinations take reasonable care. All decisions need to be based on an individual’s contractual terms and actual working arrangements".

Worth a read.

It would be a lot easier if "HMRC" just joined this forum.

[cojak]

Yes, moderating that thread would be a breeze..

[MonkeysUncle]

This has been in the guidance for a while.

https://www.contractoruk.com/news/00...ing_rules.html

unless there is reason to suspect fraud or criminal behaviour. This commitment is set out clearly in our guidance.

From what I remember, HMRC are not exactly clear as to how they 'suspect fraud'. You could argue, operating outside when you are inside is fraud so on that basis, HMRC can do what they like

[saptastic]

This has been in the guidance for a while.



From what I remember, HMRC are not exactly clear as to how they 'suspect fraud'. You could argue, operating outside when you are inside is fraud so on that basis, HMRC can do what they like

Yeah fraud in this context is very vague.

[northernladuk]

It would be a lot easier if "HMRC" just joined this forum.

Oh I'm more than sure they are here already.

[saptastic]

Oh I'm more than sure they are here already.

To be honest, I always thought you were a secret tax inspector. All this ask your accountant to try and get people to seek official advice.

[northernladuk]

From what I remember, HMRC are not exactly clear as to how they 'suspect fraud'. You could argue, operating outside when you are inside is fraud so on that basis, HMRC can do what they like

Indeed. The definition of fraud says 'wrongful or criminal deception intended to result in financial or personal gain' so if your client says no substitution now get on with this piece of work here then claiming outside when you've got a pretty good idea you are inside fits the definition perfectly. Ignorance is not a defence either so even if you 'think' you are outside because you couldn't be bothered understand IR35 then you are committing fraud.
Taking ignorance out of the equation then many many things could be considered fraud.

[northernladuk]

To be honest, I always thought you were a secret tax inspector. All this ask your accountant to try and get people to seek official advice.

Bearing in mind the level of incompetence and stupidity at HMRC you'd expect their staff to be no different so you need to be looking at PC or JtB to uncover the mole.

[vetran]

Taking ignorance out of the equation then many many things could be considered fraud.

Like HMRC's implementation of IR35!