 |
Contractor Tax Protection
Tax Liability Cover (TLC35) and IR35 insurance from Qdos Consulting |
Government confirms commitment to IR35 administration overhaul
Posted May 23, 2011
The Exchequer Secretary to the Treasury, David Gauke MP, has confirmed the Government's Budget commitment to overhauling the way IR35 is administered - to include setting up new specialist hotlines, providing clearer guidance, and making compliance checks more targeted.
In a letter to the Office of Tax Simplification earlier this month, Mr Gauke detailed the reasons why the Government decided to keep IR35 in place at the last Budget, following a series of proposals provided by the OTS team in its interim report on how to simplify the way small businesses are taxed.
The OTS suggested that there were three realistic ways forward for IR35; to suspend the legislation with a view to abolition in the longer term, to keep it in place but with improved administration, or to replace it with a new 'business test'.
Having considered that the "fiscal risks of suspension are both significant and immediate", the Chancellor decided to maintain the status quo, but subject to improving the way the IR35 regime is enforced.
The Exchequer Secretary has asked HMRC to "undertake a thorough overhaul of the administration of this area of the tax system. HMRC will focus on providing pre-transaction clarity and certainty and restoring trust."
The changes will include: setting up a dedicated helpline manned by IR35 specialists, publishing clearer and more effective guidance information, more targeted compliance checks aimed at the most 'high risk' individuals, and setting up an IR35 forum to ensure that these planned improvements actually come to fruition.
Contractor Services
- Professional Indemnity Insurance - Essential cover from Hiscox
- Helix Management Ltd - Up to 90% retention. Same day payments.
- Contract Experts - ClearSky Accounting on 08000 325 326
- InTouch Contractor Accounting - personal service & clear advice
- Parasol - the UK's favourite umbrella company
- Umbrella Company - 12,000 contractors can't be wrong!
- Together we're stronger! - Join PCG, representing contractors
- Cloud 9 Group - Umbrella Solutions only £27.50 per week
- Qdos - IR35 experts - Providers of low cost contractor insurance
- K & B Accountancy Group - Fixed fee contractor accounting only £75pm
- Free IR35 & Tax Review - Call ICS on 0800 195 3750
Related Articles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
