HMRC Have Been Giving Wrong Expenses Advice

It has been brought to light that HMRC call centre staff have been giving out incorrect advice. This solidifies the claim by many tax professionals that the current tax and employment legislation is too complex.

The latest evidence has come from public sector contractors operating through their own limited companies. They have been mistakenly told by HMRC call centre staff that they are entitled to key expenses such as travel and subsistence, even though they are subject to IR35 and Supervision, Direction and Control. There is concern that the staff are unable to understand the legislation and therefore find it difficult to answer questions and deal with queries.

Contractors who have contacted HMRC about expenses are being advised to take independent advice. As one tax professional pointed out, the majority of contractors just want to get on with their jobs. Instead they have to deal with inaccurate information and spend longer sorting out their financial planning.