A survey by Freelance:UK of 12 traditional accountants found that not a single firm knew that the “targeted solution” it offered to freelancers and contractors was caught by the MSC legislation. The firms surveyed displayed a lack of detailed knowledge of both the MSC and IR35 legislations, and a worryingly vague attitude to the need to comply with them. One firm was even quoted as saying they didn’t need to worry about IR35.
The managing director of Freelance:UK, Alasdair McGill said, “What these firms should be telling their prospective clients is that IR35 work should be handled by an employment law specialist…, not telling them that it is nothing to worry about. Accountants should not be issuing advice on IR35 unless they have real experience of employment status and are confident about defending their clients in front of the tax tribunals.”
The results of this survey highlighted the need for freelancers and contractors to choose specialised accountancy firms that are up to date with IR35 and MSC legislation, fully compliant and understand how contractors and freelancers work. Mr McGill said, “It is quite clear that many high street accountancy firms simply do not have the expertise to advise contractors on key legislation, compliance and management of their specific requirements.” It was also discovered that freelancers and contractors who listened to the advice of high street accountants could also face credit problems, because they risk being placed on HMRC’s blacklist for non-compliance.
Freelance:UK also added that they were ‘genuinely alarmed’ at the poor advice given to some firms by prospective clients.
