Contractor Calculator Newsletter, Nov 2018: HMRC glosses over IR35 consultation responses in new publication
Welcome to the Nov 2018 edition of our Contractor Newsletter. After intense campaigning, any extension of IR35 reforms into the private sector won't happen until April 2020. HMRC is still glossing over concerns raised and continues to unfairly scapegoat the self-employed as tax avoiders. The result of their CEST tool didn't align with what a court ruling on status, and HMRC's powers are under the spotlight at a Lords Inquiry. We will continue to campaign - it's certaintly not a done deal yet.
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A tribunal judge has rejected HMRC's online Check Employment Status for Tax (CEST) tool by ruling that a contracting professional was, according to case law, self-employed and not inside IR35 as the test had determined.
Following a drawn-out consultation period, the chancellor confirmed IR35 – the so-called “tax grab” on freelancers – would be introduced to the private sector. However, Hammond hinted that the rollout would “exempt small business”.