'Clients shouldn’t have to do what HMRC can’t -- get IR35 right'
A consultation proposing that the same process of having to decide IR35 status should shift to enterprises, rather than HMRC or PSCs, would therefore be unwise, the advisory firm warns.
“IR35…is complicated to the extent that HMRC themselves can’t correctly identify whether a contractor belongs inside or outside”, says the firm’s chief executive Seb Maley.
"[So] how are millions of private sector businesses expected to? This case is yet another indicator that speculated moves to extend IR35 reform to the private sector would be unwise.”
One of those bodies, IPSE, was the first to say that making business liable for deciding a tax issue which not even the tax authority can correctly decide is, at the least, ‘unfair.’
The body wants further IR35 reform stopped. And Qdos, an expert on IR35 agrees: “The [MDCM] case shows exactly why speculated private sector reform should be avoided,” it said.
Those decisions have been implied by a barrister to be so inaccurate that they actually deserve examination by MPs on a Commons Select Committee.
“Regardless of the fact [Mark Daniels’] working arrangement took place before the release of CEST, that HMRC lost the case casts further doubt on the reliability of the tool,” he said.