IR35 tax take is a tiny proportion of that hoped for

The Professional Contractors Group (PCG), the association that represents freelancers and contractors in the UK, has acquired details of the total tax take from IR35 (the intermediaries legislation) through a Freedom of Information (FOI) request.

The response to the request to HMRC under the Freedom of Information Act, asking how much tax revenue IR35 raises for the Exchequer revealed that between tax years 2002/03 and 2007/08, IR35 directly raised only £9.2 million. This equates to an average of around only £1.5 million per tax year – a tiny sum in Government terms.

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