DWP hit with £87.9m tax bill by HMRC over 'historic' IR35 errors

[KUWTC]

This is quite interesting because DWP were using CEST to carry out their assessments... Maybe this was HMRC's ploy all along? Make CEST so rubbish that it turns out incorrect results, and then HMRC can take the departments that rely on it to the cleaners. Genius, really...

https://www.computerweekly.com/news/...essment-errors

[ladymuck]

How does paying that bill work in practicality? It's basically an inter-departmental transfer but I guess HMRC will claim that it's topped up the coffers all the same.

[eek]

How does paying that bill work in practicality? It's basically an inter-departmental transfer but I guess HMRC will claim that it's topped up the coffers all the same.

Yep.

Interestingly HMRC were worse culprits and DWP only joined in after they discovered the tricks HMRC were playing - you can tell from the fact the 2018-19 is worse than 2017-18.

Both departments trying to recruit from the same limited North East talent pool does result in the other party knowing what is going on.

It's also worth saying that HMRC needed a big win to apply some pressure to commercial firms and Have you seen the size of the fine we gave the department we work with closest is definitely a good story from their eyes.

Edit to add - I love the assumption that CEST was used inappropriately to determine the status - I suspect in most cases CEST wasn't even touched.

[DrStrange]

So, if I contracted there and paid my CT + DT thinking my income was revenue and it's now turned out that it was actually my net income, can I reclaim those taxes paid in error?

[eek]

So, if I contracted there and paid my CT + DT thinking my income was revenue and it's now turned out that it was actually my net income, can I reclaim those taxes paid in error?

Ask hmrc and dwp and see their reaction

[NotAllThere]

When I worked for Her Majesty's Government, I took the whole fee (mines tax and NI) to be a massive tax rebate. All my taxes went to pay me. It was brilliant.

So the headline should really read: government department gives £87.9m of its money to another government department.