Pinsent Masons reports that HMRC’s specialist compliance team dealing with IR35 investigations has 45 full-time staff, with access to additional resource where needed. The 2021 off-payroll working changes, which shifted the burden of applying the rules from the contractor to the engaging business, have created ‘significant compliance challenges’, as Penny Simmons, IR35 advisory lead at the firm notes:
‘Since the changes to IR35 were introduced in April 2021, HMRC has consistently highlighted the need for businesses to introduce IR35 compliance programmes – to identify limited company contractors across their supply chains. For businesses with complex supply chains that rely heavily on contractors, this is not always straightforward since contractors may be engaged indirectly through third parties, such as labour agencies and subcontractors.’
Pinsent Masons reports that HMRC’s specialist compliance team dealing with IR35 investigations has 45 full-time staff, with access to additional resource where needed. The 2021 off-payroll working changes, which shifted the burden of applying the rules from the contractor to the engaging business, have created ‘significant compliance challenges’, as Penny Simmons, IR35 advisory lead at the firm notes:
‘Since the changes to IR35 were introduced in April 2021, HMRC has consistently highlighted the need for businesses to introduce IR35 compliance programmes – to identify limited company contractors across their supply chains. For businesses with complex supply chains that rely heavily on contractors, this is not always straightforward since contractors may be engaged indirectly through third parties, such as labour agencies and subcontractors.’
