The ongoing probe into IR35 by the House of Lords has uncovered some interesting information and responses from contractors and those who use their services, as well as from HMRC.

A former tax official  was recently quoted as saying: “Absolutely everyone else has a different experience to HMRC. But based on their past report, I have every confidence that the committee will soon sort the reality from this fiction.”

She isn’t alone in condemning HMRC’s findings and comparing it to the very different experience faced by contractors. In fact, Qdos CEO Seb Maley said that “HMRC’s submission doesn’t tell the full story of IR35 reform” pointing out that “the Government paints a picture that suits it’s own narrative”.

These comments are not surprising given that HMRC said that most contractors and engagers had found operating the new IR35 rules “easy”.

This was at complete odds from the written evidence submitted by industry organisations, such as IPSE, FCSA and the LITRG.

However, HMRC went further saying that most businesses had found the rules “reasonable to apply.”

Many experts have, however, pointed out that the £135 million of fines issued against other Government agencies and departments for failing to comply with IR35 suggested otherwise.

Elsewhere in it’s submission, the tax authority said when it was made aware of contractors “changing the way they work” due to IR35, it became “pro-active” to “raise awareness…among contractors.”

However, the industry has pointed out several examples of HMRC publishing factsheets and guidance late, not adding it to the GOV.UK website or not sending it out to those who must abide by the new rules.

HMRC seems to be painting a vastly different picture to peers than the realities faced by many contractors and, unsurprisingly, it has some experts concerned.

In fact, the 14 page submission shows HMRC not fully answering the Lords’ questions on five separate occasions, each time claiming it is “too early” to say what the impact is.

One area that the peers were particularly interested in was the cost of administering the scheme. It is clear that many PSCs and medium or large commercial organisations have found administering the rules more onerous and costly.

However, it seems HMRC itself has struggled with the administrative burden and revised the initial cost of managing the scheme from £14.4 million to £19.7 million.

It is clear then that the impact of IR35 has been far greater than HMRC had predicted and more wide reaching.

Hopefully, the House of Lords report should be issued later this year, and given the evidence presented to it by contractors and organisations, should make further recommendations to improve the complex and costly IR35 rules.

A new report has found that almost nine in 10 UK businesses have been forced to increase their rates for contractors to attract the right talent.

Much of the UK is experiencing a labour shortage at the moment, driven by a number of distinct factors, and the world of freelancing and contractors seems to be no different.

However, the main impact forcing the rates of contractors higher appears to be IR35 reform in the private sector.

According to the new study, of those firms that had increased their rates for contractors, 75 per cent were required to raise the amount paid by more than 10 per cent.

The research also showed that 77 per cent of end clients now find engaging contractors difficult, with half describing the process as “challenging”.

Despite rising rates, 90 per cent of the companies questioned intend to extend their use of contractors during the next year and a half to fill gaps in their workforce or to support further growth.

Surprisingly only 31 per cent of businesses had increased rates due to fears of non-compliance. Instead, contractor costs (53 per cent), talent attraction (42 per cent) and project delays (42 per cent) were seen as the bigger risks of using a “bad IR35 solution”.

The report stated: “For businesses that rely on the contractor workforce to deliver projects on time and to budget, access to a talented flexible workforce is vital to growth.

“With job vacancies reaching an all-time high, presenting an attractive, compliant and competitive IR35 offer to talent is the best way to regain some control in an uncertain environment.”

Hotel company Travelodge has revealed the strangest requests it has received from its guest in the last 12 months – and some of them are really out there.

According to the popular accommodation provider, one resident staying Derbyshire asked what time they can see the snake on the Snake Pass – a popular local tourist destination.

In another example, one guest in York kindly asked a member of staff to sing in the next room to check he had a quiet room.

Making special requests at a hotel is common Travelodge said, but the last 12 months had been particularly odd.

With growing demand for staycations, the company had experienced a surge in bookings across it’s 582 hotels across the UK following the lifting of all COVID-19restrictions.

Some other examples of odd requests included one guest in St Austell asking for a room with a south-facing window because he required sunlight to charge his aura first thing in the morning, while staff at Newcastle Quayside Travelodge were left shocked after a customer asked for a children’s paddling pool so their pet fish could have a spacious bed for the night.

A spokesperson for Travelodge said: “With more Britons holidaying on British shores than ever before, our hotel teams have also received a high volume of interesting requests and questions, especially around place names, local dishes, customs and traditions across the British regions.

“Where possible, our hotel teams will go above and beyond to help customers as they relish a good challenge.

“However, there are some requests beyond their control, such as arranging afternoon tea with the pandas, getting a shooting star to appear at 10pm, getting a part on Emmerdale, and getting seagulls to sing instead of squawk.”