Information on IR35, which was recently released by HMRC, reveals that contractors have a higher chance of winning the lottery than they have of being investigated under the rule.
Will the release of the information, which covers a period of 5 years, come to represent the start of the end of IR35? Due to the release of the information under the freedom of information rules, is IR35’s termination currently all but a certainty? Sadly not. It would be extremely naïve to believe that these numbers are news to the chancellor of the exchequer, George Osborne, who had the option this year to get rid of it. He instead chose to keep it, and in exactly the same form that Labour launched it over 10 years ago.
Thousands of individuals are impacted by IR35 and need to think about their IR35 standing. With merely 322 HMRC IR35 investigations within the past 5 years, the problem isn’t exactly high up on the HMRC’s list. Without a doubt, the concern of HMRC investigation prompts some people to look for advice from their accountant, to get their contracts evaluated and to join membership organisations, as well as to take out insurance protection. However, with the number of IR35 investigations at the current level, there is at present more possibility of winning the lottery than there is of being investigated.
Lots of people simply disregard IR35 and have done so for a long time. The creation of a new government provided those who have lobbied for the abolishment of IR35 with an additional chance to request its removal.