IR35 Investigations Triple

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December 15th 2018
Week 37
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IR35 Investigations Triple

The last seven months has seen more IR35 investigations by HMRC than the whole of last year.

193 unique investigations into IR35 complicancy were launch by the taxman this tax year so far - this is over 3 times the 59 for the entire 2011/2012 tax year.

The increase is thought to be associated with the changes to the way investigations are conducted as revealed in the Budget and the widespread media coverage of high profile organisations avoiding tax by using Personal Service Companies.

Their is no indication that an investigation has led to prosecution or additional revenue but shows HMRC are keeping a closer eye.

Umbrella Companies, which are incorporated to agency people who work under them to other companies under fixed term contracts were amongst the targets of the investigations.

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