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More than half of assessments carried out by HMRC’s Check Employment Status for Tax (CEST) tool obtained a 'IR35 does not apply' result. This indicates that thousands of contractors are being wrongly taxed due to unlawful blanket assessments made by public sector hirers who could now face costly legal challenges for unlawful deductions from their wages.
The controversy continues to rumble over the ill-fated public sector IR35 tests, as another survey shows flaws in the system with more than half those questioned revealing no IR35 compliance tests have been carried out.