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Expert says IR35 Forum presents a real opportunity

Posted Jun 6, 2011

Last week, HMRC released the first meeting minutes of the newly formed IR35 Forum.

Kate Cottrell from employment status experts Bauer & Cottrell, who is a member of the Forum, tells us how the inaugural meeting went, and what issues and challenges lie ahead for the way IR35 is administered.

Forum presents a real opportunity

"As the minutes show we covered a lot of ground at the inaugural meeting and there is still a lot more work to do.

"I felt the general mood for making improvements to the way IR35 is administered was very positive and the Forum presents a real opportunity to get some clear guidance for everyone.

"For the first time since IR35 began we have a central point for contact with HMRC, who have the appetite and the power to ensure consistent treatment and processes for dealing with IR35 across the country.

"Providing we can iron out the detail for customer segmentation, those potentially affected by IR35 will be able to establish their level of risk of IR35 investigation.

"I remain to be convinced that it is possible to have any sort of gateway test or indeed any kind of IR35 tool similar to the ESI for IR35, as any result is likely to be unclear for the majority of contractors. That said it could be of benefit to some.

"Finding a way to differentiate between the agency temp and the professional contractor will be the challenge and we must remember that the law has not changed and HMRC has to deal with this whilst being constrained by their own rules.

"Cases that go to the tribunals and courts will continue to be decided on the case law tests.

"Whatever the difficulties I hope we will end up with good workable guidance, transparent HMRC processes and peace of mind for as many people as possible."

You can also read our summary of the main points which came out of the first IR35 Forum meeting.

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