Contractors who have their IR35 status overturned by clients following the impending private sector off-payroll rules should be wary of Treasury and HMRC claims that historical cases won’t be targeted, according to tax barrister Alexander Wilson.
The IR35 expert, of Invicta Chambers, told Contractor Calculator that the door is wide open for HMRC to retrospectively examine the tax affairs of individuals deemed within the scope of the off-payroll rules.
He said: “Though the Treasury has publicly suggested that the off-payroll rules will only result in IR35 status being considered prospectively, such claims are worth very little unless written into statute.
“Rather than relying on such comments, contractors are better off seeking professional advice to mitigate risk and ensure compliance.”
