News

Blanket contractor IR35 decisions U-turn by Network Rail

Avatar
Written by Phil Ainley
Last updated October 7, 2021

Computerweekly.com recently reported that Network Rail appears to have performed a U-turn of its IR35 blanket decisions for the rail contractors it engages.

The Department for Transport’s 2020/21 accounts show that over 70% of Network Rail’s contractors are now deemed to be working outside of IR35.(1)

This is a welcome move, if it is a planned one, for rail contractors across the UK.

The DfT’s accounts showed that its executive bodies and agencies engaged 1,912 contractors during the financial year, with 1,025 being deemed to be working outside IR35. 1,323 of the contractors were engaged by Network Rail, with 977 (74%) of them assessed as being outside IR35.

This is in stark contracts to the figures for the previous financial year in which of the 538 contractors engaged by Network Rail, 99% of them were classed as working inside IR35.

The accounts also confirmed that all the contractor engagements were assessed using the CEST tool (Check Employment Status for Tax), but in the case of contractors working on the HS2 project contractors were automatically assessed by HS2 as being within the scope of IR35 off-payroll working rules.

 

IR35 tax failings continue

Government departments are required by HM Treasury to publish details about off-payroll engagements in their accounts, which also needs to highlight the number of individuals working inside IR35.

Departments are also required to highlight additional taxes paid as a result of incorrect status determinations and other IR35 compliance failings.

This is how evidence of three other government departments, including HM Courts & Tribunal Service, the Home Office, and the Department for Work and Pensions fines for IR35 failings came to light recently.

 


Sources:

(1) Network Rail U-turns on blanket inside IR35 contractor determinations (computerweekly.com)


Related Articles:

Railway Contractor Insurance – protection so you can work safely


Avatar
Written by Phil Ainley
Last updated October 7, 2021

Related IR35 content

Blanket contractor IR35 decisions U-turn by Network Rail

Computerweekly.com recently reported that Network Rail appears to have performed a U-turn of its IR35 blanket decisions for the rail…

Read more

HM Courts & Tribunal Service becomes the third government department to be hit with IR35 tax bill

Government departments have been in the news recently for their incorrect assessments of the employment status of their contractors in…

Read more

Home Office hit with huge IR35 tax bill

It has recently emerged that the Home Office has been hit with a £33.5 million IR35 tax bill after a…

Read more

DWP hit with huge tax bill for historic IR35 contractor status assessment errors

It has emerged that the Department for Work & Pensions (DWP) was hit with a huge £87.9 million tax bill…

Read more

IR35 private sector changes to go ahead next week

Changes to IR35 in the private sector will go ahead on 6th April 2021, despite hopes for a further delay….

Read more

Kaye Adams wins case and is ruled outside IR35 due to being ‘in business on own account’

In a landmark IR35 case that will be welcomed by PSCs, but will not be widely applied, television presenter Kaye…

Read more

UK Supreme Court rules that Uber drivers are workers not self-employed

The Supreme Court’s unanimous decision should come as no surprise given that Uber’s appeal follows an Employment Tribunal ruling against…

Read more

Private sector IR35 soon to be reality

On April 6th 2021, the contractor’s worst scenario will become reality… IR35 in the private sector will finally go live….

Read more

Just 2 months left until the IR35 reform: what do contractors need to know?

On the 6th April 2021, the IR35 private sector changes will come into effect. With this date now just a…

Read more

The blanket approach to IR35

The delay in the introduction of the IR35 legislation allowed contractors and their clients extra time to prepare. It also…

Read more

IR35 news: Eamonn Holmes loses his IR35 case against HMRC

Holmes, a broadcaster for over 40 years, was providing his services through a limited company called Red, White and Green…

Read more

HMRC “kicks back” in latest IR35 case

HMRC “kicks back” at Upper Tribunal in latest win against Paul Hawksbee In July 2019 we saw the fight between…

Read more

Off-payroll working in the private sector

Despite the protests and lobbying of the Government, the only reference in the Budget notes makes it very clear that…

Read more

The impact of finance sector IR35 decisions on contractors

IR35 reform to the private sector was already having a negative impact on contractors working in the finance sector prior…

Read more

Lord’s committee expresses concerns over IR35

IR35 off-payroll reform was due to be rolled-out to the private sector on April 6th of this year, but due…

Read more

Suggestions to move IR35 reforms to 2023 are rejected

Amendments to the IR35 private sector are set to go ahead from April 2021, despite suggestions from a Conservative MP…

Read more

COVID-19 and IR35: Should your clients relax now the legislation is postponed?

Steve Barclay, the Chief Secretary to the Treasury, announced that due to the effects of Covid-19 (Coronavirus), the changes to…

Read more

11th hour delay for IR35 private sector reform due to COVID-19 welcomed

The Government has delayed its controversial IR35 private sector reform by one year, until April 2021, because of the COVID-19…

Read more

No delay to IR35 rollout as the Government launches off-payroll review

The Government launched its off-payroll review on January 7th with regards to the implementation of the changes to the off-payroll…

Read more

What are the political parties saying about IR35?

In April 2020 the contractor and freelance community are set to be hit by changes to IR35 legislation which could…

Read more

Six reasons for PSCs to be proactive to respond to the IR35 private sector changes and not wait until April 2020 to do so!

Since April 2000, the Intermediaries legislation has made the individual contractor trading through his/her own Personal Service Company (PSC) the…

Read more

What impact will IR35 reforms have on North Sea operators?

With high levels of talent engaged through off payroll structures in the energy sector, the North Sea operators will feel…

Read more

Are you ready for IR35 changes?

Proposed changes to IR35 legislation could mean thousands of contractors may pay more tax. With the Government’s consultation on contracting…

Read more

IR35 and CEST Update

The IR35 story continues to rumble on taking twists and turns along the way and most of us believe it…

Read more

U-Turn on Self-employed NIC but no change to Public Sector rules on IR35

The ink has yet to dry on Philip Hammond’s first budget as Chancellor but his proposed national insurance increases for…

Read more

IR35 Products & services

Caunce O’Hara’s partnership with Markel enables us to offer a broad range of IR35-based products to protect contractors, fee-payers and end clients across the UK.

IR35 Hub Related IR35 content