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Newsletter 401: HMRC pledge to increase IR35 investigations ten-fold

by Newsletter Editor at 10:15 16/10/12 ( Shout99 Newsletter)

More than 10 years after its introduction, the IR35 bandwagon doesn't just keep rolling along, it is gaining pace as HMRC promised to increase their enforcement activities following a damning Parliamentary report.

The influential Public Accounts Committee (PAC) took a swipe at freelancers as it examined the recent much-condemned practice within the public sector, particularly some Government Departments and the BBC, of paying some of their senior workers via their own companies to reduce tax and NI bills. The backlash of this is beginning to be felt by the wider freelancer community as the Government puts its house in order concerning the so-called 'off-payroll' conditions. Firstly, it tightened up the way it contracts with freelancers; then private companies were told to do the same if they wished to contract with Government; and now the PAC has lambasted Government and the BBC for its reliance on freelance and interim worker who 'presents a risk to value for money'; and condemned HMRC for its lack of IR35 investigations. As a result, HMRC is to increase the number of IR35 investigations ten fold next year. Parliamentary Committee launches attack on freelancers Angry reaction to Parliament's report on freelancers Agents tell Government of concern over 'off-payroll' rules In the light of the furore, a tax expert looks at whether these 'personal service companies' are as tax efficient as people are making out - and arrives at an interesting conclusion. Do 'personal service companies' save tax? ********************* Other news on Shout99 ********************* Agencies defend discrimination charges Ex-Labour spin doctor heads National Freelancers Day line-up PAYE Real Time Information – six months to go October reminder for paper tax returns In Ask An Expert, the professionals answer your latest questions, including reduced rates for working through an intermediary. Letters from Freelancers opens up discussions on a number of subjects of interest to freelancers, including whether the Child Support Agency has a tie-up with HMRC when it comes to IR35?. ********************************************** Advertisement - Freelancer Outside IR35 (FO35) ********************************************** Advertisement Protection against disputes with HMRC on tax matters, including IR35, is available for £116.00 a year. Freelancers Outside IR35 (FO35) is available online for immediate cover for £116.00 a year. For more information or to order, see......Freelancers Outside IR35 (FO35). **************** Direct contracts **************** Opportunities exist for.....two business analysts to join a team working on a client project in Luxembourg.....Business Analysis Support (x2) (Ref S99/4) ******** Twitter ******** For the twitters and tweeters among our readers, Shout99 has joined the world of social media. You can follow our headline news on Twitter....www.twitter.com/Shout99Ltd ************************ Shout99 - Newsletter ************************ Please feel free to forward this newsletter to any other freelancer or small businesses who may be interested in news and information related to running a small business. You can subscribe to receive your own free copy of this newsletter on the home page of Shout99. -- Susie Hughes, Editor Newsletter 401 Shout99 - the network for freelancers www.shout99.com Tweet

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