Dave Chaplin’s Post

ACCOUNTING WEB: What really happened in the RALC IR35 case Here's the inside story of what happened behind the curtain of an IR35 tax case, which saw an IT consultancy take on the Goliath that is HMRC. My word count was 1000, and I could say an awful lot more. What happened in Gateshead, may stay in Gateshead. HMRC are likely to "win" this case, even though the facts suggest they shouldn't, simply because HMRC have unlimited access to the public purse. They win by default - using money and law. It's all very Post-Officey, isn't it. #ir35 #offpayoll

THE TIMES - IR35: Taxman should stop dragging freelancers through court [Paywall] Where small businesses are involved, including individual contractors, the argument is, given the complexity of IR35, that if the individual wins at the first-tier tax tribunal, that should be the end of it. But, as we have seen, HMRC are pursuing every IR35 case to the (company)death, using unlimited access to the public purse, so they can win at all costs. Of the last seven IR35 cases won by taxpayers, HMRC has appealed 6 of them. HMRC are always using barristers at first-tier now, against individuals trying to defend themselves. In Kaye's case, it went to four hearings, until HMRC gave up. HMRC paid for (with taxpayers money) for three barristers at the final FTT hearing. That's not fair. That's David v Goliath territory. Looks a bit post-officey. #ir35 #offpayroll

COMPUTER WEEKLY: Decade-long IR35 dispute between IT contractor and HMRC prompts calls for off-payroll revamp Reporting by Caroline Donnelly on the recent upper-tier tribunal decision that has seen the decision in RALC Consulting set aside, and returned back to the first-tier tribunal, for a fresh hearing - 14 years after the engagements under the spotlight were executed. Richard Alcock was just a guy, trying to make a living, and wanted to start his own consultancy, and did. He later hired people. He was going for it. He was planting a business seed - just like other business founders. But, the litigation by HMRC killed his entreprenurial dream. In my view, it's not right small businesses lose to HMRC, simply because HMRC litigators have unlimited access to the public purse and appear to have adopted a "purse at all costs" strategy. We've seen how they chased Kaye Adams through four tribunals, and fielded three barristers at the final hearing, along with the lawyers and inspectors to try and win. We are in David & Goliath territory, and the individuals who enter appeals proceedings face unlimited legal firepower by the state. And, when they don't make the mistakes (the judges do), the taxpayer is the one suffering financial loss. How is that treating taxpayers fairly? I assisted with the case, and was at the original FTT for all 3 days, and I heard everything that was said. The judge got it. RALC Consulting was not just some PSC stuck between two parties to save tax. It was a real business, and the relationship was a business-to-business one. HMRC were there too. They must have got it. But, the decision write up was open to attack, so in the HMRC lawyers went again, pursuing the taxpayer, at all costs. It has an air of Post Office about it. #ir35 #offpayroll

CEST: Putting HMRC’s IR35 status checker under the microscope Proper reporting by proper journalists, Computer Weekly. By Caroline Donnelly. "Since its launch in March 2017, HMRC's online IR35 status checker tool has come under fierce criticism and scrutiny, only exacerbated in recent weeks by the disclosure it has not been updated in five years" Me: All very reminiscient of the early days of the Post Office scandal, when Computer Weekly were running articles about the bug ridden Horizon system. #ir35 #offpayroll

UMBRELLAS: Tax Administration Day. I've located the front page cover of the governments plan to regulate the umbrella industry. It's a big fat nothing burger. Government has decided they will let Labour deal with the issue. NOTHING MORE TO SEE HERE: https://lnkd.in/eHW4_zRY #umbrellas

WEBINAR: IR35 & Small Companies Exemption 12.30 TODAY I look forward to seeing you all at 12.30 today. For those who have a place booked, but can't make it, don't worry, a recording will be sent out after the event. The webinar will cover: 1️⃣ What is IR35 and Off-Payroll working - who is affected by which? 2️⃣ The Small Companies Exemption - who qualifies and what does it mean? 3️⃣ Assessing employment status - the responsibilities, risks, and protections. 4️⃣ Exceptions and best practices for businesses of all sizes. We will also follow with a Q&A session where you can ask your specific questions about SCE. #IR35Shield #IR35webinar #webinar #IR35 #IR35compliance #compliance #tax #HR #HRNews #smallcompaniesexemption #smallcompanies #business #growth #smallbusiness #consultancies #offpayroll

Rectification case: Cooke v Revenue And Customs (Entrpreneurs' relief - mistake) [2024] UKFTT 272 (TC) An interesting FTT case on rectification, providing some useful references to the currently settled case law on the matter. Rectification was a topic raised by the Judge in Atholl House UT, when he was considering the method by which the hypothetical contract should be constructed. The now binding law from the Atholl UT, in para 10, guides us through the process, using a counter-factual exercise and "flashpoints". A "flashpoint" is where the contractual rights and obligations are potentially tested during the currency of the contract, and helps us to understand the contract in more detail, which feeds into the HC construction phase (see the 3-stages in Kickabout UT.) But, does or could the law on rectification come into play? Or, do we use implied terms, or do we solely use Wood v Capita and consider alternative factual scenarios? What happens if, by way of synthesising the production of the HC, by driving it through the "circumstances" highway, we end up with inconsistencies, where ones didn't exit before? Do we then apply Septo? Or should the HC never be inconsistent? When Atholl returned to the FTT (fourth hearing), much of the first morning was spent discussing the decision of the CoA, and what the word "however" meant, with respect to whether Judge Beare could alter the terms of the HC from UT#1 in Atholl. Ironcially, at the AH CoA, HMRC were reminded that judges decisions should not be read like it's a piece of statute. In S&L Barnes FTT, Judge Heidi Poon, during her construction of the HC, said the contract was varied, thereby weakening the eventual elements of control. We'll see what happens there. These are the things that keep me awake at night, and the discussions I have when I bore people to death at parties. #ir35 #offpayroll #ir35shield

IR35 training to fit your business and ensure compliance. ⚠ Are you and your team up-to-date on the latest IR35 compliance requirements from HMRC? With new guidelines issued, it's crucial that all UK businesses demonstrate they have trained their staff to properly assess IR35 status. ✔ IR35 Shield's brand new training platform makes it easy to get your whole organisation IR35-compliant. ✔ Our expertly designed IR35 course breaks down your training into bite-sized modules, bolstering team confidence and ensuring compliance with the latest HMRC guidelines. 📌 Register your interest and be the first to know! #IR35 #IR35shield #training #elearning #professionaldevelopment #cpd #learning #IR35Training #Offpayroll

For UK businesses engaging contractors, understanding the complexities of IR35 and Off-Payroll regulations can pose a challenge. This is where @IR35Shield steps in, transforming Dave Chaplin's essential book into an AI-powered resource. By making expert insights easily accessible, businesses can navigate the intricacies of IR35 compliance and mitigate tax liabilities through natural, informative conversations. Engage with ChatGPT to address your most pressing queries on contractor compliance, tax risks, and HMRC guidelines. Embrace the future of streamlined knowledge sharing! #IR35 #ChatGPT #ContractorCompliance #TaxLiability #AIAssistance #Offpayroll #Contractors #Contracting

I'm hosting "IR35 & Small Companies Exemption" webinar on Thursday. Please share.