IR35 increased HMRC activity

Posted on 03 Jul 2013
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 HMRC weeding out disguised employees 
HMRC is cracking down on those who breach the tax avoidance rule, IR35, by billing their employers through their personal company. HMRC has set up specialist teams to investigate possible breaches and imposes penalties of up to 100% of the tax due. HMRC has committed to investigating 250 new enforcement cases a year, and typically has around 400 active cases at any one time. There could be as many as 600,000 people taking their income through a limited company in the UK say Harris & Co chartered accountants Northampton

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