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Last month, HMRC produced its report on how well the change to IR35 had gone, initiated in 2021. Unsurprisingly, the department thinks it has gone well, with not much disruption to the ‘in business on your own account’ sector. Given they are marking their own homework and this is their ‘baby’ of many years standing, any other conclusion would have been a bit of a shock.
The main point from their perspective is that they have raised an extra $4.2BN. Now, in the current hard up government context, this plays very well. All that is required is for the data to demonstrate that this is the case. Their report, all nearly 50 pages of it, is HERE
Freelance Informer has written an article on the matter, with input from various sources in the industry indicating counter opinions, which hold some weight. That article can be found HERE
Members, indeed all interim practitioners, need to keep in mind that we are a small sub-group at one end of the ‘in business on your own account’ spectrum, which extends for about 4+million people currently in the UK.
Yet we have members who have been cajoled one way or another into having to work through an umbrella company, shoe-horned into working through a fixed term contract, or have clients deciding not to use their services because it went into the too difficult pile to engage in a sensible outside IR35 contract.
People have seen significant reductions in their take-home funds, increased administration, costs and stress to be able to work as an interim, or any other form of freelance activity.
The IIM is pleased to continue its policy of ensuring all members are covered with tax investigation insurance as part of your membership. Like all insurance, nobody thinks about it until ‘it will never happen to me’ turns into a brown envelope in the post from your friendly tax office….
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