Lessons from implementing IR35 reforms

Public Accounts Committee Closed Inquiry
Opened: 12 Jan 2022 Closed: 2 Sep 2022 Parliament page
Lessons from implementing IR35 reforms “Off-payroll working” - known as ‘IR35’ - tax rules can apply if a worker or “contractor” provides their services to the client through their own limited company or another type of intermediary. The rules aim to make sure that workers who would be classed as … Read more
12 Recommendations
10 Conclusions
1 Report
1 Oral session
1 Letter
1 Event
Activity timeline 5 events
2 Sep
2022
Report published
25 May
2022
Report published
22 Feb
2022
Correspondence
21 Feb
2022
Oral evidence
21 Feb
2022
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
Oral evidence sessions 1 session
21 Feb 2022
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Lessons from implementing IR35 reforms
Jim Harra · HMRC Nicole Newbury · HMRC Pete Downing · HM Revenue and Customs
Title HC No. Published Items Response
Second Report - Lessons from implementing IR35 reforms HC 60 25 May 2022 22 Responded
Recommendations & Conclusions
5 results
Clear
2 Recommendation Not Addressed
Second Report - Lessons from imple…
We are concerned that it is too difficult for workers to challenge incorrect status determinations.
We are concerned that it is too difficult for workers to challenge incorrect status determinations. The absence of a clear definition of self-employment, and limited access to relevant personal information for each contractor, can make it challenging for hiring organisations … Read more
Government Response
The response discusses the Office for Students (OfS) consulting the sector on its activity, improving communications with providers, and commissioning qualitative research. It does not address the recommendation about a fast and independent process for contractors to resolve disputes over status determinations.
HM Treasury
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1 Conclusion Not Addressed
Second Report - Lessons from imple…
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from HM Revenue & Customs (HMRC) regarding the implementation of off-payroll working tax rules, known as IR35.1
Government Response
The government response acknowledges the receipt of the report and provides basic contextual information.
HM Treasury
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7 Conclusion
Second Report - Lessons from imple…
We asked HMRC what level of non-compliance it expected there to be in smaller public...
We asked HMRC what level of non-compliance it expected there to be in smaller public bodies, and whether well-resourced departments struggling to comply is a worrying sign for the reforms more generally. HMRC suggested that smaller organisations may be better … Read more
HM Treasury
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8 Conclusion
Second Report - Lessons from imple…
The absence of a clear definition of self-employment, and limited access to relevant personal information...
The absence of a clear definition of self-employment, and limited access to relevant personal information for each contractor, can make it challenging for hiring organisations to make status determinations confidently.13 Hiring organisations can face significant financial consequences if they incorrectly … Read more
HM Treasury
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20 Conclusion Not Addressed
Second Report - Lessons from imple…
HMRC states that the IR35 reforms increased tax revenues by increasing the numbers of workers...
HMRC states that the IR35 reforms increased tax revenues by increasing the numbers of workers deemed to be employed for tax purpose. It has estimated that there was a net increase in tax revenue of £250 million during the first … Read more
Government Response
The government response simply repeats the committee's conclusion, stating that HMRC believes the IR35 reforms increased tax revenues.
HM Treasury
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Government Response AI assessment · 20 of 12 classified
Accepted 6
Accepted in Part 5
Acknowledged 6
Not Addressed 3
Total 12 recs + 10 conclusions
Correspondence 1 letter
22 Feb 2022 Correspondence from Jim Harra, Chief Executive and First Permanent Secretary, re Off-payroll research report publication, dated 8 February 2022
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