HMRC has issued more IR35 tax penalties to the Ministry of Justice (MoJ) and the Department for Environment, Food and Rural Affairs (Defra). These bodies have been issued with tax bills totalling just over £120million for IR35 non-compliance.
As shown by the 2020-2021 annual reports and accounts for the MoJ, HMRC found that incorrect IR35 determinations were made by the department.
It stated the MoJ was liable for breaking the regulations and that it owed £72.1million to HMRC. Additionally, in its own annual reports and accounts, Defra was found by HMRC to owe £48million in liabilities for giving false IR35 determinations.
Andy Chamberlain, Director of Policy at the Association of Independent Professionals and the Self-Employed (IPSE), commented on these figures.
He said: “The fact that two major Government departments have run into trouble with their IR35 compliance shows just how complicated and confusing the regulations are.
“Even with guidance, support and training from HMRC, the MoJ and Defra have not made accurate status determinations. For private sector organisations that…
