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IR35 status assessments conducted by both the Met Office and the Crown Commercial Service (CCS) have delivered 'unfeasibly high' inside IR35 or 'deemed employee’ status for contractors since the introduction of the public sector 'Off-Payroll' rules.
A Freedom of Information request has revealed that 98 per cent of IR35 status assessments carried out by High Speed 2 (HS2) in 2018 deemed the contractor to be caught by the Off-Payroll rules, fuelling suspicions of further non-compliance with the legislation in the public sector.
The Association of Recruitment Consultancies (ARC) has claimed that the proposed extension of the public sector IR35 rules to the private sector amounts to the introduction of a new stealth tax which has far reaching political and economic ramifications.
Freelance presenter and high profile television personality, Lorraine Kelly, has won her appeal at an IR35 Tax Tribunal in which HMRC claimed she owed £1.2m in tax from her contract with ITV Breakfast.