Taxman steps up IR35 battle
IR35 investigations increase, while the taxman ramps up collections from so-called freelancers
IR35 investigations increase, while the taxman ramps up collections from so-called freelancers
INVESTIGATIONS into freelancers underpaying tax have doubled, with the taxman scooping more than £1m from its efforts.
The number of probes into whether freelancers should be caught under IR35 rules – where they are effectively employed, rather than working for themselves – has doubled to more than 50.
More than £1m has been recovered by HMRC from those it has suspected of underpaying tax, according to Bloomsbury Professional.
Employees and their employer would normally pay more tax and NI than by paying a freelancer working through their own personal service company.
HMRC’s yield from enquiring about the status of the self-employed was just over £200,000 in the last tax year.
It recouped just £219,180 from enquiring into the IR35 status of workers between 6 April 2010 to 5 April 2011. The previous year saw a yield of £155,502, according to information on the taxman’s website.
Reports suggest that the increase in HMRC’s interest in chasing down those it believes are caught under IR35 correlates with details that emerged of freelancers operating within their own companies while working with the BBC.
More about:
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resourceAs the Spring Budget approaches, dissenters of the UK government’s increasingly complex contractor legislation are baying for change. HMRC has already...
View articleA round-up of what lies in store during the chancellor's Autumn Statement 2015 Read More...
View articleHMRC releases costings for running IR35 and how much it would lose if the legislation were to be abolished Read More...
View articleIR35 has proven ineffective, but 'what are the alternatives?' asks Calum Fuller Read More...
View articleLords report finds HMRC "must justify" IR35's existence Read More...
View articleIncrease in IR35 investigations sees yield break £1m barrier Read More...
View articlePersonal Service Companies Committee told in first sitting that understanding of IR35 rules is increasing Read More...
View articleA Freedom of Information request has found HMRC has not recorded key data on IR35 Read More...
View article