IR35 cases - penalities

The request was refused by HM Revenue and Customs.

Dear HM Revenue and Customs,

The Intermediaries Legislation (Chapter 8 of ITEPA 2003) was enacted in 2000.

An “IR35 enquiry” for the purposes of this FOI is to be considered as one where HMRC have (a) checked a taxpayers situation and evaluated whether taxes should be due under IR35, and (b) concluded that taxes are due.

A “Penalty Sanction” for the purposes of this FOI is to be considered as a penalty applied under schedule 24 Finance Act 2007 - Penalties for Errors, part 1 liability for penalty.

Please consider the following cohorts of IR35 Enquiries, as defined above:
1) IR35 Enquiries that have been appealed to tax tribunal and won by HMRC.
2) IR35 Enquiries where opinions have been made by IR35, and are awaiting FTT.
3) IR35 Enquiries settled by taxpayers, that have not been appealed to a tax tribunal.

For each of the above cohorts, please can HMRC provide the following:

a) The number of cases where HMRC have argued a Penalty Sanction is due.
b) The number of cases where a Penalty Sanction has been paid.

Should FOI time limits restrict the amount of data that can be provided, then please focus on the cohorts (1) and (2), and leave (3).

Yours faithfully,

Dave Chaplin

WMBC FOI Mailbox, HM Revenue and Customs

Our ref: FOI2021/08099

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1 Attachment

Dear Mr Chaplin,

We are writing in response to your request for information, received 26
April.

Yours sincerely,

HMRC Freedom of Information Team