The National Audit Office’s (NAO) enquiry into HMRC’s Check Employment Status for Tax (CEST) tool has unfortunately provided little insight after HMRC responded to the questions posed by reiterating its policies and making unsubstantiated claims.
ContractorCalculator CEO Dave Chaplin, says:
“Unfortunately, the NAO appears to have fallen victim to HMRC’s tactic of responding to questioning with a number of stock responses that the contracting sector is now too familiar with.
From our extensive investigative work into CEST, we know that little of what the taxman says stands up to even the mildest scrutiny. HMRC has pulled the wool over the eyes of the NAO, which has unfortunately failed to conduct the cross-examination necessary to truly hold the taxman to account.
HMRC has continually employed the same tactics to avoid answering the important questions about CEST and the Off-Payroll rules. The failure of an official body to hold the taxman to account has enabled HMRC to blight the public sector by paralysing its flexible workforce.
A comprehensive review of IR35 is essential not only to prevent further damage to UK plc and the economy come April 2020, but to hold HMRC to account and prevent it from further abusing its position.”
Tax does have to be taxing.
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