Blanket determinations and IR35

A useful post from Contract Calculator on why blanket determinations on IR35 are a dangerous mistake for engagers to make.

Blanket determinations are going to be damaging the industry as well as running contrary to the intentions HMRC have in implementing the IR35 changes.

The Off-Payroll legislation obliges engagers to take reasonable care [PDF] (see p136 – 61T6c) and using blanket determinations could trigger a tax investigation for carelessness anytime over the next six years.

“s36(1) TMA 1970 – An assessment on a person in a case involving a loss of income tax or capital gains tax brought about carelessly by the person may be made at any time not more than 6 years after the end of the year of assessment to which it relates (subject to subsection (1A) and any other provision of the Taxes Acts allowing a longer period).”

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