View Full Version : HMRC denies claims online IR35 tool is error-prone 3 months on from launch...

1st June 2017, 12:34
HMRC stands by its online IR35 assessment tool, in the face of research that shows it might not be all that reliable at determining the true tax status of public sector contractors...

IR35 reforms: HMRC denies claims that online tax status assessment tool returns unreliable results (http://www.computerweekly.com/news/450419967/IR35-reforms-HMRC-denies-online-tax-status-assessment-tool-is-unfit-for-purpose)

washed up contractor
1st June 2017, 13:34
Well they would say that, wouldnt they?

Tweaks will be made over the next 12 to 18 months to give more inside determinations. Why? Because government FUD is that contractors in the PS must pay more tax like their employee counterparts.

1st June 2017, 14:52
If I was relying on this to prove I'm outside IR35 I'd want written proof of what was entered into the tool by the client and what the tool output at that time, and then still require HMRC to honour their 'stand by its results' claim months/years down the line when they investigate my contract and the then version of the tool just rolls over laughing saying I'm way way inside IR35 and pay up all that lovely retrospective tax.

In short, only a fool would trust HMRC and any of the tools that work for them as regards being outside IR35 in the public sector from here on in.

1st June 2017, 15:55
Tool is on v1.5 today. Seems to be giving inside where it used to give undetermined, but can't be 100% sure.