According to PRISM, the employment intermediary trade body, HMRC call centres have been giving contractors bad advice. Contractors have been told that they are entitled to key expenses when they are not.

Workers have mistakenly been told that they are entitled to subsistence, travel or other expenses despite the fact they are subject to Supervision, Direction and Control and IR35. As a result, the association is urging contractors to seek independent advice. The latest example of poor advice being given concerns contractors in the public sector who work through their own limited companies.

Crawford Temple who is the chief executive of PRISM said “This is the most recent change to the tax legislation affecting contractors and the mistakes being made by HMRC are causing confusion and further tensions across the market. This is more evidence if any were needed that the whole system of tax and employment legislation is too complicated for people to understand. If those within HMRC are giving the wrong advice because it is not clear what chance does a contractor have who just wants to carry out sensible financial planning and get on with the job?”

PRISM has sponsored the Social Market Foundation to carry out a review of the employment legislation and they are due to report soon.