HMRC has set up a new unit focused on employment status.
That’s according to Jane Ellison, the treasury’s financial secretary, in a letter to Labour MP Frank Field.
Ellison writes: ‘HMRC is currently transforming its compliance approach with the creation of a new Employment Status and Intermediaries Team to focus on status and employment intermediary risks.’
The team will, Ellison says, allow HMRC ‘to better focus their resources and expertise to ensure these issues are effectively tackled.’
The news comes hot on the heels of Theresa May’s ordering of a new review into modern employment practices.
What does it mean for contractors? Well, if any were needed, it’s further indication that HMRC will be paying great attention to employment status’ in general, so any error or problem is more likely to be spotted by HMRC – including whether you as a contractor are inside or outside of IR35 for example.