How non-compliance with the new IR35 rules could result in your company being subject to a potential criminal investigation under the Corporate Criminal Offence (The Failure to Prevent the Facilitation of Tax Evasion)

Off-payroll working rules (IR35) will be changing on 6th April 2021. From this date the rules regarding how companies engage with individuals through personal service companies, will be affected. See our article on ‘New changes to off-payroll working rules (IR35)’ for further details on the changes.

Companies should be aware of the changes to the IR35 rules, as deliberate non-compliance could result in breaching the Corporate Criminal Offence legislation.

Under the new IR35 rules, it is the employer’s responsibility to assess the individual’s employment status. If a corporate entity engages the services of an individual through a service company and both the representative of the corporate and the individual engaged have deliberately misrepresented their employment status under IR35, HMRC has indicated the corporate may be within the scope of the Corporate Criminal Offence.

Where the employer is found to have committed an offence under the Corporate Criminal Offence legislation, they would be subject to sanctions such as unlimited fines, deferred prosecution orders and serious damage to reputation, as the company’s actions will be made public record.

At Specialist Taxation Services (Europe) we offer training courses for senior management and all other relevant employees to make staff aware of the legislation and how they can follow best practice. Our training course is an essential part in creating a defence against CCO.

If your company does not have CCO training in place, then get in touch with us via the contact page on our website or give us a call for more information. You can also visit our website to see what courses we offer.

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Emily Dodds

Emily Dodds

Marketing and Business Development Officer

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