Updated: Aug 5, 2022
Many businesses have been relying on HMRC’s publicised ‘soft landing’, wrongly concluding that no penalties mean no need to comply.
HMRC had previously explained that they will not apply penalties in the first 12 months unless there is evidence of deliberate non-compliance, however ignoring the legislation will inevitably be seen as deliberate non-compliance.
As such, it is important that end clients have the necessary protections in place and ensure up-to-date knowledge of relevant legislation and case law where possible and should be aware they could fall foul if they have not adopted this correctly.
As HMRC has already confirmed that compliance checks are underway within the oil and gas sector, this should be a signal for companies with responsibility for contractors to review IR35 processes to avoid fines or tax bills.
For more information about IR35 and what this could mean for your business, please contact firstname.lastname@example.org where we will be happy to assist.