IR35 and the Emergency Budget

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IR35 and the Emergency Budget

Posted Jun 23, 2010

Since the coalition government first pledged to "review" the IR35 rules, contracting industry experts have been split between those who are overjoyed by the prospect of the demise of this much hated legislation, and those who urge caution... in case the current rules are replaced by something even more onerous.

As the new government is only in its infancy, few could expect the emergency budget to contain any further commitments on IR35, given the pressing need to tackle the massive budget deficit.

George Osborne may have surprised many of his critics with an impressive performance in the Commons, and the general consensus from within the contracting world is that he has managed to balance much needed cuts in public sector waste with enough encouragement to ensure the private sector can lead the recovery.

In the Budget itself, Osborne once again promised to review IR35 as part of a wider review of the way small businesses are taxed in general. Further details are expected to be delivered "shortly".

Until then, speculation is bound to be rife within the contracting world. In the past decade, an entire industry has evolved as a result of IR35 - from a boom in the umbrella company market, to contract reviews and insurance (and contractor news sites!)

We await these "further details" with great interest!

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