Reply to post: IR35's HMRC Business Case

Royal Bank of Scotland IT contractor ban sparks murmurs of legal action

Anonymous Coward
Anonymous Coward

IR35's HMRC Business Case

IR35 has not been the success that it was predicted to be by HMRC. Contractors, agencies and clients changed their contracts to maintain the tax efficiencies they had previously. The amount of money that HMRC invests in an IR35 case compared to the windfall I think has been poor.

All that is happening is that organisations that use a large number of contractors see targets painted on their backs due an increased risk of HMRC asking them for money.

I suspect that several things will happen. Organisations that use a large number of contractors will either pay more or invest in mitigating the risk that HMRC have transferred to them. It will take two years for this to be shaken down and during those two years some contractors will walk, some will stay and bite the bullet,

One benefit of public sector contracts now is that you now know up front whether its in or out of IR35.

The first two questions I ask now ask are the rate and the IR35 status. The IR35 status has an impact on the distance I am prepared to travel. From a contractor's perspective the business case for taking on a piece of business has become a little more complex.

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