The idea of HMRC using the data to find IR35 targets is speculation. It's a reasonable concern, but speculation all the same.
Obviously the reason this is happening is because of the false self employment legislation, which is ostensibly aimed at sole trader types working through agencies (construction workers etc). Unfortunately HMRC are using the standard sledgehammer approach and limited company contractors are being caught in the crossfire.
A probably consequence of both the false self employment legislation and the government's apparent dislike of umbrella companies is that more and more people will herd into PSCs. If that happens I wouldn't be surprised if both IR35 and MSC activity was stepped up significantly.
Obviously the reason this is happening is because of the false self employment legislation, which is ostensibly aimed at sole trader types working through agencies (construction workers etc). Unfortunately HMRC are using the standard sledgehammer approach and limited company contractors are being caught in the crossfire.
A probably consequence of both the false self employment legislation and the government's apparent dislike of umbrella companies is that more and more people will herd into PSCs. If that happens I wouldn't be surprised if both IR35 and MSC activity was stepped up significantly.
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