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Recruiters support Government plans to review IR35

Posted Aug 2, 2010

A leading recruitment body has announced its plans to work with the OTS to develop alternative legislative approaches to IR35.

Following the launch of the Office of Tax Simplification (OTS) last month, the Recruitment & Employment Confederation (REC) has written to the Rt Hon Michael Jack (who chairs the OTS) to support its moves to review IR35.

IR35 has been a thorn in the side of various REC sector groups, particularly the Technology Sector Group and the Interim Management Association (IMA).

Jeff Brooks, Chair of the REC Technology Group commented:

"Over the coming year, the work of the OTS will have huge implications for the contractor market place. Specialised Recruiters in the IT and technology sector are in daily contact with contractors and have regularly flagged up the challenges that current taxation requirements create. We will be working constructively with Government and with the OTS to feed into the forthcoming reviews and to help streamline the current tax regime for those operating in our market."

Paul Botting, Chair of the Interim Management Association (IMA) said:

"A review of IR35 is long overdue and will help to simplify flexible working options such as interim management. Interim executives and managers are key drivers for both growth and efficiencies and should not be stifled by an overly complex tax system. The voices senior interim managers and their providers must be at the forefront of the debate over the coming year."

The OTS is expected to publish its initial findings on IR35 and small business taxation in general before the 2011 Budget.

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