Tuesday 17 October 2017

IR35 Reform Delays Tube

My thanks to a loyal reader who sent me the following press release from Qdos Contractor wrt HMRC's claims that IR35 reform is not impacting public sector contracting:
"IR35: TfL project delays contradict HMRC who deny reform has impacted sector.

Delays to critical TfL London Underground repair work due to the exodus of public sector contractors further contradicts HMRC’s claim that IR35 reform is not impacting contracting and the public sector, highlighted Qdos Contractor of The Qdos Group.

TfL recently revealed a ‘significant number’ of contractors stopped working on projects as a result of IR35 changes – a move which has led to skills shortages and the significant delay to critical repairs.

HMRC has previously denied IR35 reform has led to contractors exiting the public sector, with HMRC Tax Assurance Commissioner Jim Harra stating:

“This has not happened. HMRC has been monitoring this. Contractors come and go, and the market is naturally fluid, but it would be wrong to suggest that the public sector has significant recruitment gaps because of this reform.”

Prior to IR35 reform, 85% of contractors surveyed by Qdos Contractor were prepared to leave the public sector should they be found inside IR35.

Qdos Contractor CEO, Seb Maley commented:

“That a vital TfL project faces delays is obviously a concern. It also further contradicts HMRC’s claim that IR35 reform has not affected contracting and the public sector itself. When will HMRC admit the mistakes they’ve made with regards to IR35 reform?

“Blanket and inaccurate IR35 determinations will continue to force contractors from the public sector. That HMRC adamantly denies any public sector skills shortages because of reform is hugely worrying, particularly when public sector organisations are beginning to speak out too.

“The success of vital public sector projects rest heavily on contractors. It’s therefore essential that accurate IR35 decisions are made. This will become all the more important should reform be extended to the private sector.”


  1. Translation: HMRC are telling lies. Again. They tell many. Big and small.

    The impact of this latest untruth is enormous, obviously affecting infrastructure delivery and the wider economy - I wonder whether Government might hold the failing HMRC Senior Management to account for this?

  2. HMRC dishonesty is not surprising anymore. On this very day a number of years ago, while working on the frontline as an HMRC officer, I was subjected to violence from a member of the public while upholding the law.

    At the time, this was accepted as all 'part of the job'.

    Years later however I was subjected to a campaign of bullying from management, and after raising concerns, the bullying escalated to more senior management. In their attempt to suppress the truth they went so far as to create a number of false documents re-writing history. HMRC management's violence, bullying and law breaking wasn't, and isn't, accepted as 'part of the job'.

    The moral of the story is 1) don't work for HMRC and 2) if HMRC can behave in such a dangerous & dishonest manner to a long serving employee then the taxpaying public can have no trust & confidence in their integrity or HMRC's compliance with basic laws.

    When are HMIC conducting that investigation into HMRC and their rogue employees?

  3. HMRC should get a grip fast. And if any liars are identifiable in the IR35 fiasco then they should be investigated for misconduct and face justice.