Orange & Gold Blog

IR35, a taste of the future

This week I have had an inside track from the IR35 Forum tasked with the improvement of the administration of IR35 by HMRC. Remember this all stems from the Office of Tax Simplification (OTS) proposals to the Treasury and the subsequent announcements at the Budget 2011.

We are led to believe that there may be dedicated HMRC teams established and in order to test the new system there will have to be lots of investigations. Last year there were only 23! This is set to change. We understand that HMRC will take a more structured approach and risk assess folk – high, medium or low - and I mean risk of INVESTIGATION, not risk of IR35 applying.

I expect that many contractors that have been keeping their heads in the sand about IR35 may be in for a shock and those that it should not really be concerned with it will get some certainty. I hope so, after 12 years. Watch this space in the months ahead!