IR35 Forum Discuss RTI and Impact Of Business Tests

HMRC have released the minutes of the latest IR35 Forum meeting, their first update since the publication of the Business Entity Tests in May. The meeting, held on the 23^rd July, gave HMRC the chance to update the forum on their progress with the RTI system and general operations, as well as a discussion about the taxation of controlling person’s consultation.

Despite some public criticisms of HMRC’s scoring of the IR35 business tests, representatives from both the PCG and FCSA were present, along with members of the REC, CIOT and APSCo. The forum were given a presentation on the real time information PAYE system and HMRC confirmed that further details on the timeline of introduction will be available soon.

In regards to the newly structured IR35 compliance teams, HMRC said that they are undertaking more reviews with an improved turnaround time for cases. They continued to discuss how many years would be covered within a review, with some cases requiring the need to look further back at a person’s history.

HMRC were unable to report unable to provide a real update on the business tests, but aim to do so at the next meeting on 9^th October. They also asked the forum members to gather their own information from those who had taken the tests in order to get a full picture of any issues. Changing the weighting of the questions was also discussed, although it was said that this could cause confusion, and that any such changes should only be made once, and reviewed after 2 years.

The final point raised on the agenda was regarding the taxation of controlling persons consultation. This has come under much scrutiny by groups, including those on the forum, due to how closely it relates to existing IR35 legislation. However, HMRC said that as it was currently the subject of a public consultation it was strictly outside the remit of the Forum.

ICS work with a team of experts in employment and tax law to ensure our services are fully compliant with existing IR35 legislation and the latest government regulations, such as the AWR. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.