Increasing publicity over IR35

19th October 2018

In the run up to the Autumn Budget, where it is widely speculated the Government will clamp down on IR35 in the private sector, barely a week goes by without another IR35 case being in the news.

Employment tribunal claims are increasingly being launched by those caught by the IR35 reforms of the public sector. HMRC recently settled such a case out of court with one of their marketing consultants. HMRC had used their CEST employment status tool and found the engagement was caught by IR35. The worker therefore claimed she was entitled to holiday pay. Having settled the claim in full, albeit out of court, engagers may now have legitimate concerns of whether the existence of a limited company gives protection against employment rights.

In a second case, a contractor caught by IR35 had employers’ National Insurance contributions deducted along with the expected PAYE and employees’ National Insurance contributions. The tribunal judge found that the contract was not caught by IR35 at all; an embarrassment for HMRC as their CEST employment status tool had been used to make the decision. Taking a case to employment tribunal in these circumstances may now always end in the contractor getting money back – either the unlawfully held National Insurance, or a greater pay-out if the contract is found to be outside IR35.

Despite the issues surrounding workers employments rights and the accuracy of the CEST employment status indicator, it is still rumoured that private sector IR35 reforms will be announced in the Autumn Budget on 29 October. This would leave only the implementation date open to speculation – April 2019 or April 2020?



 
Other items in Blogs
 
Angelica Hunt
19th April 2021 HMRC – Tax refund delays

A number of our clients are experiencing long delays in receiving tax refunds from HMRC.   HMRC attribute these to the need for them to perform security checks in order to combat fraudulent claims.  In some cases, HMRC need more information in order to verify genuine claims.   They may issue a verification letter, either…

Read More »

Ian Piper
15th April 2021 2021 SME Growth: Revenge Spending?

As we pass the Covid-19’s first anniversary of its impact on our area’s economy, accounts of local SME’s are now starting to show part of the damage they have experienced through the lock-downs and associated restrictive measures. Thankfully, through Government financial help and the nimble footwork of businesses adapting to survive, the overall effect upon…

Read More »

Jaimie King
15th April 2021 Life after CBILS: The Recovery Loan Scheme

The government-backed Coronavirus Business Interruption Loan Scheme closed on 31st March to new applicants. Thankfully, the government has put in place further support for businesses, to follow this.   The Recovery Loan Scheme – Government backed loans, 3 months – up to 6 years depending on the product – Up to £10m, no cap on…

Read More »

Vanessa Pearson
26th March 2021 6 April: A Guide to Off-Payroll Working Tax Rules

The proposed new rules apply regarding who determines IR35 status for freelancers hired by medium and large companies are imminent. Our Brief Guide will help find out how this affects you and what you can do: A Brief Guide to Off-Payroll Working Blog entry by: Vanessa Pearson

Read More »

Ben Kilby
25th March 2021 I hear a rumour…

I hear a rumour that Lloyds Agricultural banking team based in Edinburgh has been disbanded and merged within other teams around the country. Although some within the new regional teams may have some knowledge of agriculture it has been suggested that customers felt that this was not important. It seems that the agricultural specialism within…

Read More »

Fiona Mann
24th March 2021 Making Tax Digital – the next steps

Our MTD Group have produced Issue 5 of their newsletter giving details of Making Tax Digital (MTD) as it continues.   So if you are unsure of what to do next, our newsletter has information and advice how to proceed.  Don’t delay however as penalties will be introduced if submission deadlines are missed.   W&P_MTD5…

Read More »