Taxman’s powers to snoop condemned

Proposals to give tax inspectors new powers to snoop on interim managers and other freelancers have been condemned by the Professional Contractors Group (PCG).

Outlined in the HM Revenue and Custom’s (HMRC) consultation on new powers, the proposals would allow the taxman to ask freelancers’ clients for information, and use it in court - even if it is wrong.

What’s more, the taxpayer would have no right of appeal.

PCG managing director, John Brazier, said that HMRC often approach end-clients without identifying the right person to speak to. As a result they often get unclear and incorrect information that can be disastrous for the taxpayer.

He explained it means the true nature of their working arrangements with a client may not be accurately portrayed in any hearing and the taxpayer has no right of appeal.

The PCG believes that freelancers should have the option of approaching the end-client themselves, so that accurate information is obtained from the appropriate person.

This is simple common sense, said Brazier, and actually benefits HMRC as they wouldn’t waste their time and our money dealing with inaccurate information.

This is an open invitation to snoop and pry. Anywhere else in life, he added, the public has redress to correct inaccuracies and clear their names - except when it comes to the taxman.