Taxation: IR35

House of Lords written question – answered at on 14 March 2006.

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Photo of Lord Forsyth of Drumlean Lord Forsyth of Drumlean Conservative

asked Her Majesty's Government:

Further to the Written Answer by the Lord McKenzie of Luton on 14 February (WA 168), whether they collect data on (a) the revenue collected as a result of the intermediaries (also known as IR35) legislation; and (b) any estimates of the revenue which it was anticipated would be collected as a result of this legislation.

Photo of Lord McKenzie of Luton Lord McKenzie of Luton Government Whip, Government Whip

HM Revenue and Customs does not routinely collect data in respect of specific types of legislation from PAYE/NIC returns, as well as from its employer compliance review programme.

The estimate of yield arising from the intermediaries legislation was published in Table A2.1 of the 2000 Financial Statement and Budget Report.

Does this answer the above question?

Yes0 people think so

No7 people think not

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Annotations

Paul Chapman
Posted on 19 Apr 2006 8:58 pm (Report this annotation)

Well Lord McKenzie may not know the answer but I can give him one.

Of 1231 investigations undertaken by HMRC into PAYE returns.

1228 resulted in a determination that IR35 was not owed
3 resulted in tax being owed.

Average length of investigations 2 years.

I find it staggering that the government introduces tax changes without checking such things.

Rob Willett
Posted on 22 Apr 2006 9:15 am (Report this annotation)

The legislation was bought in becuase of a perceived loss of revenue due to high dividend, low salary model used by small company owners. That was in the RIA. Simple question, has the criteria in the RIA been met or not? If the answers is yes, we would know about it. So what is the answer?