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The DWP left with huge tax liability after making inaccurate IR35 determinations The Department for Work and Pensions (DWP) was left with a staggering tax bill of £87.9m for wrongly assessing the IR35 status of contractors, a Computer Weekly article has revealed. Details of DWP’s non-compliance emerged in its annual accounts, which provide details of departmental spending during the 2020/21 financial year. According to the report, the £87.9m tax payment made to HMRC followed an IR35 investigation in March 2020,
Court upholds verdict that riders cannot be classed as workers and receive rights Deliveroo riders challenging to have their employment status changed have been dealt another blow after the Court of Appeal upheld a previous decision that ruled them self-employed – a result which means they cannot claim workers’ rights. Above all else, this case shines a light on the confusing nature of employment law, emphasising the importance of making well-informed collaborative decisions regarding the employment status of self-employed individuals.
HMRC’s widely criticised IR35 tool fails to deliver an answer 20% of the time Damning new CEST usage data has revealed that HMRC’s IR35 tool delivered 210,100 indeterminate results in an 18-month period, which raises further questions about how well equipped it is to help businesses determine IR35 status. The government figures explore the performance of the Check Employment Status for Tax (CEST) tool, between 25th November 2019 to 21st May 2021. During this period, CEST was used 1,018,250 times
Organisations affected by off-payroll changes share their experiences so far With two months having passed since the introduction of IR35 reform in the private sector, the dust is starting to settle on the biggest shake up in this legislation’s history. Following the arrival of off-payroll changes, medium and large businesses are now responsible for determining the IR35 status of contractors they engage, with fee-payers carrying the liability. In the lead up to the reform, much was made about how prepared
Postal service faces multi million pound bill if sub-postmasters win employment rights It has emerged that 120 self-employed sub-postmasters are taking the Post Office to an employment tribunal in a bid to have their employment status changed to workers and receive employment rights from the postal service. After a landmark Uber ruling at the Supreme Court in February, which was closely followed by news that Addison Lee had a tribunal appeal dismissed, the case serves as yet another reminder to