IR35 tool flaws
Posted on 18 Oct 2013
HMRC admits lack of evidence on CEST tool accuracy
More than 100,000 contractors could be facing incorrect tax bills after HMRC said it has no evidence to suggest that its IR35 CEST assessment tool is accurate. A series of Freedom of Information requests from ContractorCalculator has resulted in HMRC admitting it holds no detailed test data at all. The Revenue said: “The CEST tool testing was done by a workshop. The only documented output of the workshops is the set of rules used by the tool.” ContractorCalculator founder and CEO Dave Chaplin said he is poised to call for an inquiry by the Public Accounts Committee into HMRC’s conduct following the discovery.