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Turn of the screw
Key points
- Pressure placed on people in government bodies making decisions on employment status.
- Lack of faith in accuracy of HMRC’s check employment status for tax (CEST) tool.
- Size and set-up of some government departments may have added to problems in determining status.
- Wake-up call to organisations that engage contractors and may find themselves the subject of a IR35 review.
The recent news stories concerning IR35 and the back taxes which have been claimed from government departments seem to have created the opportunity for some commentators to return to discuss the complexities of the new rules for off-payroll working in the public (and private) sector. Others have suggested that it is surprising that the government departments have not followed the rules.
The reports note that the Department for Work and Pensions (DWP) had to make a settlement to HMRC over IR35 failings in the period 2017 to 2021 of...
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