HMRC’s CEST IR35 tool firmly defended at committee hearing

The Treasury’s financial secretary Lucy Frazer defended HMRC’s IR35 CEST tool at a Lords committee hearing although she did admit that HMRC’s 2017 IR35 rules had been a ‘little rushed’

In a Finance Sub Committee oral evidence session on off-payroll working for the private sector, the committee questioned a group of representatives from the Treasury and HMRC about the IR35 rules introduced in April 2021.

Opening the discussion, the Committee chair, Lord Bridges of Headley asked the group how HMRC could have concluded that applying 2017’s IR35 rules did not pose any ‘systematic challenges’ to engagers. Frazer responded stating that the public sector framework was ‘a little rushed’.

Frazer said: ‘There were improvements we needed to make, and HMRC have made a significant number of improvements since, but like with all systems, more improvements can and are going to be made.’

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