HMRC 'does not hold data vital to IR35 changes'

HMRC 'does not hold data vital to IR35 changes'
HM Revenue & Customs (HMRC) has said it does not hold the data that would be needed for the evaluation of proposed IR35 alternatives.

A report by Contractor Calculator found that information on the cost of investigations into the IR35 system is not available.

It appears that HMRC does not keep records of the price that it cost to mount IR35 enquiries and tribunals - the sort of information vital to look into the possibility of the IR35 reforms proposed by the Office of Tax Simplification (OTS).

In an interim report on the Small Business Taxation review, OTS chairman Michael Jack said: "Any future decision on abolishing IR35 altogether would require underpinning by a much better quality of data than presently seems to be available."

This comes after think tank the Adam Smith Institute found that the UK is now one of the most highly taxed countries in the world, which has significant impact on contractors.
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