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 year of the reform, and an additional 50,000 individuals put on payroll during the first two years.42 HMRC told us that the estimated increase in yield was £275 million in the second year.43 HMRC told us it is confident that it can attribute the increase to the reforms in the short term.44 However, it is difficult to disentangle the impacts of the reform from other factors that may have affected employment patterns. EU Exit, the COVID-19 pandemic and wider changes in government resourcing to reduce use of contractors mean HMRC cannot be certain to what extent the increase is due to the reforms.45