Freelancers slam taxmanís new powers to pry

The Professional Contractors Group (PCG), which represents UK freelancers, has condemned proposals to give new powers to HM Revenue and Customs, which would allow tax inspectors more leeway ìto snoopî.

The plans, outlined in HMRCís consultation on new powers, mean the taxman will be able to ask freelancersí clients for information, and use it in court even if it is wrong; the taxpayer would have no right of appeal.

ìHMRC often approach end-clients without identifying the right person to speak to, and get unclear and often incorrect information which can be disastrous for the taxpayer. It means the true nature of their working arrangements with a client may not be accurately portrayed in any hearing and the taxpayer has no right of appeal,î said John Brazier, PCGís managing director.

In recent IR35 cases to go to the Special Commissioners, the results have been strongly influenced by the evidence given by a representative of the freelancerís end-client on behalf of HMRC.

PCG argues that freelancers should have the option of approaching the end-client themselves, so that accurate information is obtained from the appropriate person. ìThis is simple common sense and actually benefits HMRC as they wouldnít waste their time and our money dealing with inaccurate information,î added Mr Brazier.

Freelancers fear that the ìcatch-allî nature of the proposals will allow the taxman to contact anyone they like and use inaccurate or sketchy information.

ìThis is an open invitation to snoop and pry and again shows that when it comes to tax, we are all deemed to be on the fiddle. Anywhere else in life, we have redress to correct inaccuracies and clear our names - except when it comes to the taxman. This sort of attitude undermines business confidence in HMRC and, sadly, just underlines what our members feel ñ that despite all its promises this Government has no concept of, nor interest in, encouraging small businesses to flourish in the UK.î