Freedom of Information request reveals HMRC’s shortcomings
A recent Freedom of Information request made by Macclesfield firm Pulse Umbrella Group has uncovered large holes in HMRC’s IR35 statistics.
In response to the request HMRC admitted that they have no details relating to the following:
- Number of companies/individuals who were potential targets for IR35 enquiry since 2001 investigation;
- Total cost of IR35 enquiries since 2001;
- Number of those caught by IR35 that paid immediately following investigation;
- Number of those caught by IR35 that entered into a time to pay deal with HMRC;
- Number of those caught by IR35 that had their property seized or suffered other means of enforcement to settle the resultant liability; and
- Number of enquiries that were settled at an early stage and whether any discount settlements were offered by HMRC
In fairness to HMRC I would not realistically expect HMRC to record a good number of the above points because there would be no necessity for the department to do so. The total cost of enquiries is however a matter of public interest and if the truth be known HMRC would be utterly embarrassed if they actually took time to calculate the cost:tax yield ratio. Maybe this is why they don’t bother?
Although the Revenue has produced figures for the number of enquiries and tax yields since the introduction of IR35 up to 2012, they withheld such statistics for the last tax year following a request by ContractorCalculator in May 2013. HMRC cited s.22(1) of the Freedom of Information Act 2000 which permits information to be withheld where such information is intended for future publication. We’re still waiting!
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