Forty-five strong specialist team targets IR35 cases

The HMRC specialist compliance team working on IR35 investigations has a headcount of 45 full-time staff according to data obtained by multinational law firm Pinsent Masons through a freedom of information request.

HMRC states also that the team has access to additional resources outside its core team.

The investment in HMRC’s specialist IR35 compliance team follows changes to the rules in April 2021 which shifted compliance responsibilities from the individual contractor to the business engaging the contractor. The new rules have created significant compliance challenges for businesses that rely heavily on a flexible workforce.

Penny Simmons legal director and IR35 advisory lead said: ‘Since the changes to IR35 were introduced in April 2021 HMRC has consistently highlighted the need for businesses to introduce IR35 compliance programmes – to identify limited company contractors across their supply chains. For businesses with complex supply...