Results of the public sector consultation is up

[difficulttimes]

FWIW, I was originally of your opinion that this was forward looking, primarily, and for exactly the same reasons, but eek makes a couple of good points. First, that many cases may be settled without a tribunal (based on fear, ignorance, and the upfront costs, if you don't have tax investigation insurance). Also, if the volume of demands is large, many of those with scant knowledge of IR35 will make fatal mistakes in the early stages of an inquiry by responding themselves, without professional assistance. In short, they could take a lot of tax (wrongly, in most cases) without a tribunal. Second, eek has inside knowledge.

I take your point but one thing is for sure that due to this legislation contractors are well and truly clued up with IR35 now if they weren't beforehand so not sure they are just going to lay down and pay up... (more than likely they will be on this forum) There still has to be an open enquiry and an investigation etc. This will need to be done for each and every single person.

Everyone in my office is and I reckon even a year or so ago many may never have heard of IR35. I also think very few will go for an inside IR35 contract from an outside IR35 contract doing essentially the same. Considering this legislation is only in 1 sector (large one at that), to go after people retrospectively would be grossly unfair but they are HMRC.

[newtothegame]

Hi.

Thanks for all your comments... didn't occurs to be if they back date they would need to do it on a case by care basis.

A follow on thought.... how much does the average ir35 investigation cost hmrc is there is someone like me who has insurance....

[difficulttimes]

Hi.

Thanks for all your comments... didn't occurs to be if they back date they would need to do it on a case by care basis.

A follow on thought.... how much does the average ir35 investigation cost hmrc is there is someone like me who has insurance....

Every case is different which is why very few end up in tribunal. I would speak to your insurers as I'm sure they will be able to answer all of your questions.

[newtothegame]

I guess my point is what would it cost hmrc to investigate the average contractor... based on the reward of "potential" unpaid tax.

[eek]

FWIW, I was originally of your opinion that this was forward looking, primarily, and for exactly the same reasons, but eek makes a couple of good points. First, that many cases may be settled without a tribunal (based on fear, ignorance, and the upfront costs, if you don't have tax investigation insurance). Also, if the volume of demands is large, many of those with scant knowledge of IR35 will make fatal mistakes in the early stages of an inquiry by responding themselves, without professional assistance. In short, they could take a lot of tax (wrongly, in most cases) without a tribunal. Second, eek has inside knowledge.

Not direct insider knowledge. I'm just reporting that im watching those with that knowledge panic and they are panicking and fleeing.

Now it could be that this is just someone like me worrying, spreading tales and paranoia taking hold, but I don't think so knowing the people I was talking to

[eek]

I guess my point is what would it cost hmrc to investigate the average contractor... based on the reward of "potential" unpaid tax.

For the initial letters nothing especially if someone senior is asked and so asks exactly what was different in April from march

[newtothegame]

But I guess they would then need to spend money to determine the difference between my old and new contracts... March vs april

[northernladuk]

But I guess they would then need to spend money to determine the difference between my old and new contracts... March vs april

I'd forget this train of thinking. The Gov has a very long history of spending more on stuff than they get in return. Look at this whole PS debacle.

[bobspud]

Thanks Teapot... do u mean April 6th? So as long as the payment is made before then in theory it's all OK... I ask as they run a weekly payroll

I would not take his advice unless he's offering to sell his assets to back it... his thinking is pretty naive to be frank.

The guidelines start from the 6th but who knows what departments may do.

[eek]

Thanks Teapot... do u mean April 6th? So as long as the payment is made before then in theory it's all OK... I ask as they run a weekly payroll

We don't know what payment is the important one. Is it the one from agent to contractor or the bulk payment from public sector to agent?