According to the Government 10 years ago, contractors were up to monkey business as far as their expenses were concerned.
They were working away from their home office and yet were claiming things like the cost of accommodation, meals, travel etc.
The Government, along with the rest of Parliament, were very angry at this blatant claiming for expenses and decided to do something about it.
Not Real Contractors
They decided that IT Contractors were not really in business on their account but were disguised employees – but only for tax purposes.
They decided that their place of work was not at their office at home but their clients‘ premises and that travel expenses could not be claimed.
It was even said that if contractors remained in the same workplace for more than two years that they should not be able to claim expenses for getting there.
Oh, what moral outrage there was in Parliament about these chancers trying to claim travel, accommodation, and meal expenses.
Now, we discover that at the same time as they were enacting IR35 they were making IT Contractors look like paragons of virtue.
Contractors wouldn‘t have dared to claim for some of the expenses those who sat in judgment on them claimed.
Time to Test It
It would be very interesting to see what would happen if there was a major IR35 case now.
I‘m sure neither the Government, nor the rest of Parliament, would be over keen on a case of national interest where they were claiming that a group of people were claiming unfair expenses.
This might be a time to drive a coach and horses right through this nefarious IR35 tax law.