Too relaxed on tax?

Fewer than 50% of mid-sized businesses have a formal process in place to track off-payroll workers, despite the IR35 rules for the private sector coming into force five months ago, according to research by accountancy firm BDO

Since 6 April 2021, private sector employees (apart from certain small businesses) have been responsible for deciding whether the contractors they use are de facto employees and therefore if PAYE and NIC deductions should be made from payments to them.

However, a BDO survey in July of 500 medium-sized businesses with revenue between £10m-£300m, found businesses relaxed about IR35, leaving themselves at risk of an HMRC investigation.

John Chaplin, employment tax partner at BDO, said: ‘Businesses who do not comply will still need to pay tax and could face significant penalties.

‘HMRC has shown that it will not turn a blind eye to non-compliance, so businesses who do not have a formal IR35 process in place should immediately rethink their affairs. Now is the time to correct their tax affairs.’

Issue: 7947 / Categories: Legal News , Profession , Tax

Too relaxed on tax?

However, a BDO survey in July of 500 medium-sized businesses with revenue between £10m-£300m, found businesses relaxed about IR35, leaving themselves at risk of an HMRC investigation.

John Chaplin, employment tax partner at BDO, said: ‘Businesses who do not comply will still need to pay tax and could face significant penalties.

Issue: 7947 / Categories: Legal News , Profession , Tax

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Too relaxed on tax?

MOVERS & SHAKERS

Switalskis—Naila Arif, Harriet Findlay & Ellie Thompson

Ward Hadaway—Matthew Morton

Thomson Hayton Winkley—Nina Hood