Process of Analysing Reduction in Corporation Tax as a Result of IR35/Offpayroll

The request was successful.

Dear HM Revenue and Customs,

IR35/Offpayroll naturally results in a reduction of Corporation Tax collected by HMRC as contractors move from working through Limited companies to working PAYE via an umbrella.

Please can you detail what methods or measurements you use to determine the reduction in Corporation Tax due to this phenomenon. That is, I wish to understand what tools you have available to be able to separate contractor Corporation Tax from the other taxes you collect, and so then be able to measure the difference in total tax take from that segment, or the number of payers in that segment, etc. Whatever other information you have would also be most welcome, but in this request I'm really after the methods and processes you have rather than any particular numbers.

Yours faithfully,

Ralph Bolton

FOI Team, HM Revenue and Customs

Our ref: FOI2021/05070

Dear Mr Bolton,

Freedom of Information Act 2000 Acknowledgement

Thank you for your communication of 19th March which has been passed to
HMRC's Freedom of Information Team.

We have allocated the above reference which you should quote if you need
to contact us.

The Team will arrange for a reply to be sent to you which will either
comply with HMRC's obligations under Freedom of Information Act or, if we
think it's an enquiry that we don't need to address under the terms of the
Act, let you know why. If it is the latter we will, if possible, pass it
on to a more appropriate part of the Department for answer.

As you will appreciate, the coronavirus pandemic has provided
unprecedented challenges for Government Departments including HMRC. Over
the coming weeks our priorities are to provide critical existing and new
Public Services for Government to support customers during this difficult
time. As a result, resources may be diverted away from usual compliance or
information rights work. HMRC aims to respond to all FOIA Requests within
20 working days. If for whatever reason this timescale cannot be complied
with HMRC will, where possible, write to you explaining the reason for the
delay and providing an estimated time for response.

Yours sincerely

HMRC Freedom of Information Act Team

FOI Team, HM Revenue and Customs

1 Attachment

Dear Mr Bolton,

We are writing in response to your request for information, received 19
March.

Yours sincerely,

HMRC Freedom of Information Team