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11 April 2017

IR35 reforms: HMRC 'delays' blamed for last-minute public sector compliance panic

HM Revenue & Customs (HMRC) stands accused of sabotaging public sector efforts to comply with the IR35 anti-tax avoidance reforms by giving organisations too little time to determine the tax status of their contractors.      While the arrival of the IR35 reforms was foreshadowed in both the 2016 Spring Budget and November’s Autumn Statement, confirmed details about how public sector organisations should implement them emerged just weeks before they were due to come into force on 6 April. “It’s not left people with a great deal of time to finalise their plans, and there is a lot of panic and confusion going on in the market as a result,” Seb Maley, CEO of consultancy firm QDOS Contractor, told Computer Weekly. “Back when it was the Budget [in March 2017], we were saying they should delay it or introduce a grace period or a delay the reforms until the autumn, because it’s clear that no-one is prepared.” Maley’s organisation has had to temporarily suspend the 24-hour contract review service it usually offers organisations that need...

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