Re: I am a genuine business, yet I'm now getting hassled by my clients!!
There are three reasons that organisations should recognise blanket decisions as being dangerous, that are contained within the legislation itself:
They do not constitute ‘reasonable care’ – and if they are found to have breached section 61T(6)(c), then the tax risk passes back up to that organisation.
Insurance underwriters will not cover the tax risk unless an individual assessment has been conducted, and agencies do not wish to take on uninsured risk.
If investigated by HMRC, an inadequate role-based blanket assessment could trigger a 2 year extension of the IR35 enquiry window to six years due to ‘carelessness’ under Section S36(1) TMA 1970. If the error was deliberate this could extend to 20 years (S36(1A)).