HS2, the UK’s high-speed rail network development body, has paid a final settlement of £6.2m to HMRC for non-compliance with IR35 tax avoidance legislation. This amount is lower than the initially budgeted £10.2m, as confirmed by the 2023-2024 annual report. The compliance review began in May 2022 due to concerns about adapting to IR35 reforms. Of the 339 off-payroll workers engaged, 94% were deemed inside IR35. CEO Dave Chaplin expressed concern at potential talent loss and higher costs due to this compliance situation. The reliance on HMRC’s CEST tool for contractor assessments raises questions about its effectiveness. Lengthy investigations create uncertainty for organizations, contractors, and businesses.
HS2 reaches £6.2m settlement with HMRC for IR35 compliance issues in public sector reforms
