IR35 HEADACHES, 13 YEARS ON

摘要

Working with contractors, we take a keen interest in all things related to IR35, the UK legislation designed to reduce tax avoidance by so-called personal service companies (PSC). This has been part of UK law since 2000 and HMRC's IR35 investigations sometimes spans years, becoming a significant cause of stress for contractors. Yet the impacts of the legislation remain unclear. We submitted a Freedom of Information (Fol) request to HMRC to establish what effect IR35 is having. The Fol was designed to find out the number of companies or individuals identified as possible targets for investigation since 2001 and the cost of these investigations; how many of the investigated individuals paid immediately; how many entered into a time-to-pay deal and how many of the investigations resulted in the property seizure to settle debts. We also asked about other enforcement measures and what discount settlements were received on the alleged total amount owed.