Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what data his Department holds on the number of penalties issued for non compliance with IR35 regulations.

HMRC cannot provide data that might disclose details about identifiable taxpayers. Following the 2017 reform of the off-payroll working rules in the public sector and the extension of this reform to medium and large-sized businesses outside the public sector from April 2021, HMRC undertakes compliance checks to ensure compliance with the rules.

HMRC has committed to taking a light touch approach to penalties in the first year of the reform. This means that unless there is evidence of deliberate non-compliance organisations will not have to pay penalties for mistakes relating to the off-payroll working rules made during the first year, regardless of when mistakes are identified. However, organisations will need to pay any tax due as a result of any errors identified. Where HMRC does impose a penalty for ‘careless’ behaviour, they will always consider whether that penalty can be suspended.