Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, with reference to pages 156 and 262 of her Department's publication entitled Cabinet Office annual report and accounts 2025-26, HC 602, published on 14 September 2026, what is the planned timetable for the determination of whether a £8.9 million penalty will be applied by HMRC to Cabinet Office; whether this will be in addition to the £38 million of total estimated gross liability; which Cabinet Office business units were involved; and how many staff were involved.

HMRC’s IR35 audit remains ongoing and HMRC is considering evidence put forward by the department. Any final liability can only be calculated following the conclusion of the audit. There is no fixed timetable although both departments are working to bring the matter to a close whilst carefully considering the relevant facts.

The annual report and accounts show the £8.9m as a remote contingent liability, which is separate to the £38m provision.

The primary roles being considered by HMRC relate to Commercial Assessors in the Government Commercial Function and High Risk Project reviewers in what was the Infrastructure Projects Authority. However, all engagements from 2017/18 to date assessed as out of scope are being considered as part of the audit. The number of contractors being assessed within this timeframe is circa 1,400.