David Davis
Main Page: David Davis (Conservative - Goole and Pocklington)Department Debates - View all David Davis's debates with the HM Treasury
(11 months, 1 week ago)
Commons ChamberThe hon. Lady will have heard my answer to a previous question where I stated that we have put billions of pounds of extra money into local government this year to cover pressures. We recognise that those pressures are real, which is why the provisional settlement proposes an above-inflation rise for next year.
A fortnight ago, Kaye Adams, a TV presenter, won her case against His Majesty’s Revenue and Customs on IR35 status. Despite the fact that she won her first tax tribunal on the issue, HMRC took her to either a tribunal or court four times over a nine-year period, forcing her to spend £200,000 in legal fees. HMRC spent many times that, using two King’s counsel at the last hearing alone. This was over a net tax bill of £70,000. There is no conceivable economic case for that. What HMRC is trying to do is move the guidelines by coercing Ms Adams and using her as an example to intimidate other self-employed workers to give in to HMRC’s bullying. This is a disgrace. It has gone on for too long. The 2021 revisions were inadequate and ministerial oversight is too weak. When will the Government review IR35 and, ideally, abolish it?
It is our duty to ensure that everyone pays the right tax under the law regardless of wealth or status. We note the decision of the tribunal and will carefully analyse the outcome before considering the next steps, but the off-payroll rules ensure that people who work like employees, but through their own limited company, are taxed like employees, creating a level playing field for other workers.