Contractors, including those working through an umbrella company, may be interested to learn that the IR35 Forum is starting to make real progress.
According to the minutes of September’s IR35 Forum meeting, HMRC has promised to make improvements to four key areas of the IR35 process. The Revenue is now asking for detailed comments on ways it could improve contractor guidance, the IR35 helpline, status review and its investigation processes.
These areas form the backbone of IR35 reform and the Revenue has asked non-HMRC Forum members to consult with their colleagues on these matters because it is concerned that it is not receiving the specific, detailed information it needs to improve the administration of IR35.
HMRC also confirmed that although it will not share detailed risk profiling with the Forum, it will share the broad risk assessment. Whether or not contractors and freelancers will be able to use the broad risk assessment to establish their IR35 status will depend on how much detail is provided, but it is thought that this concession is a step in the right direction.
The Revenue also intends to create 12 different contractor scenarios, based on real life situations, in order to identify instances where there is disagreement with HMRC, agreement with the Revenue or uncertainty. Non-HMRC representatives of the Forum will be invited to present their views on these scenarios at the next meeting on November 9th.
As well as the IR35 helpline, there are plans to implement a business Educational Support Unit to publicise IR35 guidance for clients and contractors and an IR35 National Compliance Unit.
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Image: Works in Progress by koalazymonkey
