HMRC call centres giving wrong advice to contractors, claims PRISM
PRISM claims it has uncovered evidence of HM Revenue & Customs call centres wrongly telling workers they are entitled to travel, subsistence and other expenses, despite being subject to IR35 and supervision, direction and control.
The trade body and association of umbrella companies told Recruiter its CEO Crawford Temple has been having conversations with providers and is aware of “at least a dozen” cases in the past month. The latest examples of these instances relate to public sector contractors operating through their own limited companies.
Temple said the April changes to tax rules, in particular to IR35 legislation, has been causing confusion and further tensions across the market: “This is more evidence, if any were needed, that the whole system of tax and employment legislation is too complicated for people to understand.
“If those within HMRC are giving the wrong advice because it is not clear, what chance does a contractor have who just wants to carry out sensible financial planning and get on with the job?”
In a response, an HMRC spokesperson said: "‘Rules for travel and subsistence expenses for workers engaged through employment intermediaries were introduced from 6 April 2016. The rules put people who work through intermediaries such as agencies and “own companies” in the same position as other employees. Our frontline staff have guidance about the changes.’"
PRISM added the Social Market Foundation, a public policy think tank, has been carrying out an independent review of tax and employment legislation, sponsored by PRISM, which is expected to report back soon.
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