Robert Salter a director at Blick Rothenberg, said: ‘In a move which can only be described as Orwellian, the Department for Work & Pensions (DWP) has been fined over £87m in tax, NICs and associated penalties by HMRC for their failures regarding the operation of IR35 and withholding taxes for freelance contractors, who have been working through personal service companies (PSCs).’ It was ‘almost laughable that one public organisation fines another in this situation’, and Salter questioned why the DWP did not properly consult with HMRC to get this right.
‘This embarrassing episode now sends a worrying message to the private sector where the IR35 rules were extended to apply from 6 April 2021,’ Salter added. ‘An urgent review of the tax rules in this area is needed so they operate effectively and are fit for purpose.’
Robert Salter a director at Blick Rothenberg, said: ‘In a move which can only be described as Orwellian, the Department for Work & Pensions (DWP) has been fined over £87m in tax, NICs and associated penalties by HMRC for their failures regarding the operation of IR35 and withholding taxes for freelance contractors, who have been working through personal service companies (PSCs).’ It was ‘almost laughable that one public organisation fines another in this situation’, and Salter questioned why the DWP did not properly consult with HMRC to get this right.
‘This embarrassing episode now sends a worrying message to the private sector where the IR35 rules were extended to apply from 6 April 2021,’ Salter added. ‘An urgent review of the tax rules in this area is needed so they operate effectively and are fit for purpose.’
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