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New Forum will monitor HMRC's administration of IR35 rules

Posted Apr 8, 2011

The PCG has been invited by the Government to join a new IR35 Forum, which will be established to help monitor and evaluate HMRC's administration of IR35.

At the last Budget, rather than abolishing IR35, the Government decided to keep the regulations in place, but with much-improved administration. The creation of a Forum to engage with interested parties was one measure outlined in the Budget documentation in March.

Alongside this pledge, the Government has also committed to setting up a dedicated helpline staffed by specialists, publishing guidance on those types of cases HMRC view as outside the scope of IR35, and targeting compliance activity by restricting reviews to high risk cases.

The Forum is set to hold its inaugural meeting in May, and the PCG intends to draw up terms of reference to ensure that the needs of the contracting community are heard.

John Brazier, MD of the freelancers' organisation, commented:

"It is vital that freelancers are properly represented at this juncture. We have been assured that far from being a 'talking shop' the new Forum will be a positive force for change. PCG has already put forward initial thoughts on how the Forum should work to revamp IR35. We will continue to develop these ideas in conjunction with our membership."

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