HMRC issue briefing on IR35 off payroll reform

[webberg]

Thanks, must have missed that bit.

So no more investigations (for those of us who haven't committed fraud or suspected criminal activity)?

Not quite.

The "assurance" is given that no NEW enquiry will arise from the operation of the revised rules.

NEW enquiry - you may get an enquiry in Q1 next year - perhaps of a very general nature - perhaps a compliance enquiry. That is pre the new rules.

You may get an enquiry after the new rules arrive, but based on information held prior to those rules coming in. Remember that HMRC has been very active in the private sector collecting names of contractors.

HMRC may decide that mis declaring "obvious" inside roles is fraud. We already know that HMRC has applied such mission creep to other terms in the tax legislation.

Whilst I think the words are welcome, I would not be relying on them.

HMRC observing promises alleged to have been made is rare.

[Paralytic]

Thanks, must have missed that bit.

So no more investigations (for those of us who haven't committed fraud or suspected criminal activity)?

...if you trust a non-attributed sentence on the HMRC website that could easily change next week/month/year.

[polomf]

Thanks, must have missed that bit.

So no more investigations (for those of us who haven't committed fraud or suspected criminal activity)?

Well they only have to suspect you of tax avoidance by incorrectly determining yourself outside ir35... so client now determining someone inside is a good reason to suspect it I would have thought

[boxingbantz]

bottom of section '2. Reform to the rules'

Thanks, must have missed that bit.

So no more investigations (for those of us who haven't committed fraud or suspected criminal activity)?

[JohntheBike]

HMRC estimates that, outside of the public sector, only one in 10 people who should be paying tax under the current off-payroll working rules are doing so correctly. These reforms will ensure the right amount of tax is collected. This will level the playing field between those who were applying the rules and those who were not.

Utter BS.



Where does it say that?

This will level the playing field between those who were applying the rules and those who were not

changing their justification again then. First it was about "a contractor doing the same job as a permie", then we had "a contractor earning the same as a permie", now we have "making sure that non compliant contractors follow compliant contractors". Isn't anyone challenging this propaganda?

[polomf]

HMRC estimates that, outside of the public sector, only one in 10 people who should be paying tax under the current off-payroll working rules are doing so correctly. These reforms will ensure the right amount of tax is collected. This will level the playing field between those who were applying the rules and those who were not.

Utter BS.



Where does it say that?

bottom of section '2. Reform to the rules'

[boxingbantz]

HMRC estimates that, outside of the public sector, only one in 10 people who should be paying tax under the current off-payroll working rules are doing so correctly. These reforms will ensure the right amount of tax is collected. This will level the playing field between those who were applying the rules and those who were not.

Utter BS.

"HMRC have taken the decision that they will only use information resulting from these changes to open a new enquiry into earlier years if there is reason to suspect fraud or criminal behaviour."

Where does it say that?

[saptastic]

Yes that is the issue here - if companies say ok - lets make individual determinations based on said criteria - than those "real" contractors will have no change. But essentially it is the blanket determinations or no PSC policy by companies that is creating an issue. HMRC can now say it is not their fault and count the extra pennies.

[Hobosapien]

HMRC have taken the decision that they will only use information resulting from these changes to open a new enquiry into earlier years if there is reason to suspect fraud or criminal behaviour.

That's how it should be otherwise a change to CEST applied retrospectively would make things worse in terms of client confidence in a determination, as it would allow HMRC to time travel back and apply whatever rules it came up with in the future.

It's all a bit of a moot point anyway, as we see with the almost daily news that clients are shortcutting the process to avert risk by not even bothering with the effort of determinations and dictating that future contracts will not be accepted for those operating via a PSC, willing to engage those using a brolly or payroll PAYE service only.

[Major Hassle]

HMRC issue briefing: reform of off-payroll working rules - GOV.UK

HMRC will launch a new CEST tool this year. Which is pointless if there are blanket determinations.

"Contractors who are following the existing rules correctly will feel little impact".

HMRC have taken the decision that they will only use information resulting from these changes to open a new enquiry into earlier years if there is reason to suspect fraud or criminal behaviour.

[polomf]

"HMRC have taken the decision that they will only use information resulting from these changes to open a new enquiry into earlier years if there is reason to suspect fraud or criminal behaviour."

[saptastic]

HMRC issue briefing: reform of off-payroll working rules - GOV.UK

HMRC will launch a new CEST tool this year. Which is pointless if there are blanket determinations.

"Contractors who are following the existing rules correctly will feel little impact".