Is it time for the tax office to call it a day on IR35? The figures below suggest they are not giving it too much priority
The number of IR35 reviews opened by the tax office for the last five years, is as follows:
6 April 2006 to 5 April 2007 is 158
6 April 2007 to 5 April 2008 is 104
6 April 2008 to 5 April 2009 is 25
6 April 2009 to 5 April 2010 is 12
6 April 2010 to 5 April 2011 is 23
and the tax yield received for the past five years is as follows:-
6 April 2006 to 5 April 2007 = £1,906,619
6 April 2007 to 5 April 2008 = £1,730,640
6 April 2008 to 5 April 2009 = £1,430,358
6 April 2009 to 5 April 2010 = £155,502
6 April 2010 to 5 April 2011 = £219,180
We at A&C Chartered Accountants firmly believe that self employed freelancers and contractors should be free to organise their affairs so that they legally pay the least amount of tax as possible. The tax officie would be better employed in increasing their efforts to identlfy ghost traders who pay no tax at all.
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