TaxCorporate TaxIR35 tax fails to bite

IR35 tax fails to bite

Hugely contentious tax on contractors raises just £1.5 million a year

The controversial IR35 tax is barely paying its way, and has raised just £9.2
million between the 2002/03 and 2007/08 financial years.

The employment tax was introduced as a means of treating certain contractors
as though they were employees of their clients.

Contractors who pay the tax have found that it reduces their take-home pay by
up to 25%.

The Professional Contractors Group obtained the figures from HMRC under the
Freedom of Information Act. The government has earlier declined to answer
questions raised in Parliament as to how much revenue it earned from IR35.

Further reading

What is IR35?

Related Articles

‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

1m Emma Smith, Managing Editor
OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

3m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

4m Emma Smith, Managing Editor
Tax crackdown brings in £468m for HMRC

Corporate Tax Tax crackdown brings in £468m for HMRC

9m Accountancy Age editorial
Treasury Select Committee report released on Making Tax Digital

Accounting Standards Treasury Select Committee report released on Making Tax Digital

9m Stephanie Wix, Writer
Spring Budget 2017: Making Tax Digital

Business Regulation Spring Budget 2017: Making Tax Digital

8m Shereen Ali, Deputy Editor
Tax fraud loses HMRC £16bn

Corporate Tax Tax fraud loses HMRC £16bn

8m Emma Smith, Managing Editor
HMRC nets £2.6bn in corporate tax from big businesses

Corporate Tax HMRC nets £2.6bn in corporate tax from big businesses

9m Accountancy Age editorial