IR35 teams target public sector contractors

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HMRC has ramped up its IR35 compliance activity over the last two months, especially where public sector workers are concerned, according to contractors' adviser Qdos Consulting.

Under new rules that came into force from September 2012, public sector contractors operating off payroll will need to provide assurance that they are paying their income tax correctly.

HMRC investigation teams were set up earlier in 2012, which are complemented by the specialist recent reports confirming that public sector contractors operating off payroll are under the tightest scrutiny, mainly as a result of controversies surrounding senior civil servants providing services through personal companies, such as...

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By vstrad
22nd Apr 2013 19:30

The Business Entity Test...

... is designed to enable businesses to assess the risk of being chosen by HMRC for investigation. It is NOT, as some people seem to think, a tool for assessing whether a contract is or isn't caught by IR35.

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23rd Apr 2013 09:30

IR 35 and HMRC

HMRC have for the last number of years been paying Cap Gemini under the Aspire contract the sum of £75/£80 Million a month for IT support. One wonders how the contract has been serviced and if Cap Gemini have used the services of one man Companies to provide the  support required. I would suggest that this might be something that Margaret Hodge might put on the agenda when next she has a chat to Lynne Homer, I for one would be very interested to learn more of the arrangements that her department entered into with that Company and more importantly have there been any changes in those arrangements as a result of IR35 considerations. Mrs Homer should I think be given notice of the question just to be sure that the answer is given in public rather than in a written response which may not have the same impact or receive the same publicity.

Come on someone ask the question!!!!     

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23rd Apr 2013 10:59

You can bet your

sweet life that all these companies have fail safe contracts for services in place. In fact HMRC have more than likely already agreed that these contracts are cosher.

This is all huff and puff to say to other tax payers watch out we really do mean business ----- this time.

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