Intermediaries
Publication of IR35 Forum Minutes 3 April 2018
One of the topics under discussion at the last meeting was the employment status consultation, which was published on 7 February alongside the government’s response to Matthew Taylor’s Review of Modern Working Practices.
This is a joint Treasury, HMRC and BEIS consultation, which will be closing on 1 June 2018. HMRC confirmed there will be a series of roundtables as part of the consultation.
Also under discussion and with an extensive Q&A from forum members was ‘Compliance’ and the employment status tool – CEST - including mutuality of obligation (MoO).
The minutes of the meeting 21 February 2018 are available to view on GOV.UK.
Background to the Forum
The IR35 Forum is a group of external stakeholders who meet regularly with HM Revenue and Customs (HMRC). It was established following the government’s commitment at Budget 2011 to make clear improvements to the way IR35 is administered. This followed the publication of the Office of Tax Simplification’s review of Small Business Tax. The members of the IR35 Forum include taxpayer representatives and professional advisers with expert knowledge and experience of how the legislation operates in practice and how it affects key taxpayer groups. The IR35 Forum meets quarterly.
CIPP comment The next IR35 meeting takes place on 10 May which Samantha Mann, senior policy & research officer will be attending. If you have anything you would like raised at the forum, please email policy using IR35 as the subject.
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Construction worker wins IR35 tax appeal 4 April 2018
In the second significant judgement this year on IR35 intermediaries legislation, a ruling by HMRC has been overturned.
The case MDCM LTD v HMRC concerns company of which Mr Daniels and his wife are the directors and employees. The business consists of providing construction management services to construction companies.
Mr Daniels set up MDCM LTD in 2004 to escape working for a large company and now provides construction services management services, including night shift management.
Mr Daniels explained the nature of his work. Many construction companies only employ a limited number of staff to keep down overheads. When there is demand for work on a specific project the company will hire in the additional staff for the duration of the project. On some construction contracts, particularly in London with tenanted buildings occupied during the day who have a right to quiet occupation, the work needs to carry on at night, hence the need for a night shift manager. The night shift manager, as with a day manager, is responsible for the site including the works done by subcontractors, co-ordination of suppliers, safety issues and other matters associated with overall site supervision.
This appeal concerns the contract with Solutions and STL but as background the tribunal were provided with copies of four other contracts between the appellant and Solutions in addition to the contract that related to the STL engagement
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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