“Mistruths and denials”: HMRC accused of misleading chancellor on IR35 reforms
“HMRC appears to have become the puppeteers of both the chancellor in one hand and the secretary to the Treasury in the other, issuing mistruths and denials to constituents to shore up their flawed position.”
Former BBC presenter to pay HMRC over 400, 000 after losing IR35 case Christa Ackroyd, a former BBC presenter, has been ordered to pay more than 400, 000 in unpaid tax after the High Court ruled that she was caught by IR35 tax legislation.
At a select committee hearing on 20 March 2018, Leading QC Jolyon Maugham flagged up the same potential outcome. “In two years? time this committee is going to be looking at a different question, which is whether the BBC and the NHS were right to force everybody to be taxed as employees in circumstances where the case law has shown after the fact that very often those people were properly taxed as self-employed, ” Maugham explained. He added: “They [NHS and BBC] are saying everybody is an employee in circumstances where the law does not support that conclusion.” Chaplin claimed that HMRC was now in a “precarious position”. “It has misled thousands of taxpayers; its consultation process chooses to ignore research demonstrating its failures, and now it is trying to cover its tracks by misleading the chancellor. Surely the chancellor cannot allow HMRC to get away with it? Public officials are required to abide by the Nolan Principles, which include objectivity and honesty, and HMRC is failing on both counts. We need a full inquiry before any further changes to IR35 are considered.” Contradictions between the messages from HMRC and the Treasury follow repeated Freedom of Information requests by ContractorCalculator for HMRC to publish its legal position on MOO and explain why it was omitted from its CEST tool. The recent Armitage Technical Design Services (ATDS) Ltd v HMRC tribunal appeared to further compromise HMRC’s position on MOO, as the judge rejected the taxman’s own interpretation. Chaplin added: England might be hoping that its World Cup campaign is devoid of red cards but I would like to show HMRC, CEST and the off-payroll reforms one big red card with no second chances. we will continue to shout and boo from the sidelines to expose HMRC for utter incompetence and waste of taxpayers? money, not to mention the false claims it is pedalling to the government. __________________________________________________________________________________
Why rolling out IR35 into the private sector could be catastrophic for the economy The Treasury’s hints that IR35 rules could be extended to the private sector are more than unsettling, writes Julia Kermode, chief executive of The Freelancer & Contractor Services Association. __________________________________________________________________________________