Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
HMRC’s specialist compliance team, which is focused on IR35 investigations, reportedly has a headcount of 45 full-time staff, according to Pinsent Masons.
According to information provided by HMRC, that team also has access to additional manpower and resources outside its core team.
Using the IR35 rules, HMRC has led a lengthy and at times controversial crackdown on arrangements where individuals are paid as self-employed contractors, rather than as employees, which HMRC considers has led to an underpayment in income tax and national insurance.
HMRC’s previous IR35 investigations have led to several high-profile cases, including with sports presenter Gary Lineker, whose case was heard in a tax tribunal over a disputed £4.9m in tax.
Other high-profile cases brought by HMRC include those against media personality and talk show host, Lorraine Kelly, and ‘Loose Women’ TV presenter and journalist, Kaye Adams.
The investment in HMRC’s specialist IR35 compliance team follows changes to the rules in April 2021, which shifted compliance responsibilities from the individual contractor to the business engaging the contractor.
Under the new IR35 regime, businesses are responsible for determining the employment tax status of contractors who work through intermediaries, such as personal service companies and paying any employment taxes that may be due.
Steven Porter, partner and head of tax disputes and investigations at Pinsent Masons, said: “The scale of HMRC’s dedicated IR35 compliance team shouldn’t come as a surprise. HMRC has made clear its desire to maximise tax revenues in this area. It has now built a lot of bandwidth that allows it to undertake more investigations.”
