Our website uses cookies to store information on your computer. You may delete and block all cookies from this site, but parts of the site will not work as a result. Find out more about how we use cookies.
(Do not show this message again)
Shout99 - News matters for freelancers
Search Shout99 - News matters for freelancers
(Advanced Search)
   Join Shout99  About Shout99   Sitemap   Contact Shout99 21st Jun 2018
Forgot your password?
Shout99 - Freelancers, FO35, Section 660
New Users Click Here
Shout99 - Freelancers, FO35, Section 660
Shout99 - Freelancers, FO35, Section 660
Front Page
Freelancers' Shop...
Ask an Expert...
Direct Contracts
Press Links
Question Time
The Clubhouse
Conference Hall...
News from Partners


Business Links

Shout99 - Freelancers, FO35, Section 660

Freelancers' Shop

Personal Financial Services
from ContractorFinancials




Income protection

... and more special offers for Shout99 readers in the Freelancers' Shop

Shout99 - Freelancers, FO35, Section 660
Shout99 - Freelancers, FO35, Section 660

News for the
Construction Industry

Hardhatter.com - News for small businesses in the construction industry

Powered by
Powered by Novacaster
Shout99 Jobs

Qdos: Are IR35 enquires actually rising?
by Susie Hughes at 09:53 26/06/14 (News on IR35)
Specialist contractor insurance providers, Qdos, looks at the evidence and experiences of increased activity in IR35 investigations, following HM Revenue and Customs new approach to compliance with specialist teams and targeted enquiries.
Qdos writes:

It’s easy enough to understand contractors’ scepticism when another advert for competitive IR35 insurance pushes its chest out amongst the many congested on a contractor site. Often, the sheer amount of content about IR35 can distract from the true sincerity of the current situation.

Usually, when another article emerges telling of more investigations than ever, it will be met with much scepticism. But how much truth actually is there buried in the crowd of IR35 warnings?

HM Revenue and Customs now utilise four teams, each containing ten individuals, specifically dedicated to launching as many IR35 enquiries as possible.

Possibly spurred on by a considerable dip in enquiries between 2008 and 2011, HMRC genuinely look set to launch more enquiries than ever before. In the last tax year, their cases actually quadrupled.

IR35 expert and ex-revenue inspector Andy Vessey recently stated that: “Over the last few months I have seen an increased number of IR35 enquiries being taken up. Previously HMRC appeared to be concentrating their efforts primarily in the public sector.

"Whilst they still continue to be interested in the public sector they are now casting their net further afield.

"Despite HMRC's promises of two years ago to close down enquiries promptly where they had sufficient and satisfactory evidence to do so, and having seen this promise fulfilled for the last 18 months or so, I am now seeing signs of HMRC slipping back into their bad old ways of prolonging enquiries unnecessarily. Certain Status Inspectors are now digging their heels in and their actions appear to be premeditated.”

Kate Hardy, an expert consultant who has been dealing with IR35 for 12 years now, also warned that: “Most of the enquiries we’re defending are ones where the contractor has no insurance and with those clients they’re having to pay on an hourly consultancy rate rather than being able to rely on an insurance policy to cover all of these costs.”

Even contractors seem to be grasping the reality of the situation at hand. One contractor on a popular social networking sight issued their own warning from experience, stating, “Believe me IR35 is getting more vicious and I'm hearing of people being asked to complete a compliance check on a regular basis. Public sector contractors feel hounded and there is every possibility that many will exit the service leaving key services at real risk.

“Because there has been no successful challenge to the rules that HMRC make up annually, this will get worse and more complicated by the year...”

Investigations opened...

Tax yield from IR35 investigations in...
2008/2009....... £1,430,358

Note: The tax yield in a certain year des not necessarily equate to the investigations opened in that year.

Shout99 works with Qdos to offer a range of insurances and services specifically tailored to the requirements of a freelancer. For more information, see Qdos Consulting

Shout99 has a dedicated news area for comprehensive coverage of IR35 policy, Government and HMRC initiatives and legal cases, see Shout99's News on IR35 section. You can also sign up for free email alert when new articles appear in this section.

Advertisement - Protection against IR35 investigations (FO35)

Protection against disputes with HMRC on tax matters, including IR35, is available for £116.00 a year.

Freelancers Outside IR35 (FO35) is a complete operating system for small businesses with guidance on compliance; draft contracts; a helpline; status assessments; and representation by Qdos Consulting in the event of a dispute with the Revenue on tax; VAT; or IR35 issues.

FO35 is available online for immediate cover for £116.00 a year. For more information or to order, see......Freelancers Outside IR35 (FO35).

If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'.
Susie Hughes © Shout99 2014

Printer Version

Mail this to a friend

Copyright 1999-2018, Shout99.com | All Rights Reserved
Privacy Notice and Terms of Use