IR35 Factors, IR35 Compliance, are you caught?

Contractor Tax Protection
Tax Liability Cover (TLC35) and
IR35 insurance from Qdos Consulting

Contractor group calls on Chancellor to repeal IR35

Posted Apr 7, 2009

The PCG has called on the Chancellor to abolish IR35, and other barriers to contracting, in the forthcoming Budget.

Repeal IR35

In its submission to Budget 2009, the contractors' organisation said that IR35 was the largest single impediment to contract working in the UK, and that it should be repealed as a matter of urgency.

The PCG says that IR35 not only creates massive uncertainty for contract and freelance workers, but there is no evidence that the Treasury actually raises any money from the much-hated tax measure.

Contractors needed for the recovery

Chris Bryce, PCG chairman, said that contractors have an essential role to play in the UK's economic recovery:

"The flexibility, skill, and knowledge they provide will be instrumental in meeting the needs of businesses, generating future wealth for the economy. Therefore the tax and regulatory burdens upon them must be removed.

S44-7 Tax Rules

Alongside its call to repeal IR35, the submission also calls for the VAT staff hire concession abolition to be reversed, and for the abolition of the "S44-7" tax rules.

S44-47 ITEPA 2003 obliges workers using employment agencies to take payment as employment income, thus encouraging self-employed workers to incorporate.

The PCG says that "S44-7 makes it impossible in practice for agencies to pay freelancers gross unless they have a corporate form, thus limiting the choice of legal form available to them."

Please scroll down for related articles

Contractor Services


Related Articles

Online IR35 test tool launched for contractors
Contractors can now access a free online employment status test which provides an IR35 status result in just ten minutes.

IR35 irony as HMRC's ex-IT boss becomes short term contractor
The Sunday Times has revealed that HMRC's IT chief left his permanent role in June 2009, only to return as a contractor via his own limited company for the following three months.

Concerns raised over Telegraph IR35 abolition comment
With speculation rife about the future of IR35, a leading accountancy site has raised doubts over a newspaper claim that the coalition has promised to "abolish" the legislation.

Contractors' group asks - is this the end of IR35?
PCG, the leading contractors' organisation, says that it welcomes "the clearest statement yet from the Coalition Government that IR35 is to be abolished."

IR35 and the Emergency Budget
In the Emergency Budget, George Osborne confirmed the coalition's pledge to review IR35 as part of a wider review of the way small businesses are taxed in general.

Should contractors curb their enthusiasm over the coalition's pledge to review IR35?
Given the news that the coalition plans to review IR35, could a simpler tax system actually be more restrictive to the self employed?

Analysis of the Novasoft IR35 tribunal victory
Analysis of the recent Novasoft Limited IR35 tribunal, in which a contractor beat HMRC against all odds.

Contracting industry reaction to IR35 review plans
The contracting industry has reacted with both joy and caution at the news that the new coalition government has announced its intention to review IR35.

New government confirms plans to review IR35 rules
The new coalition government has released a more comprehensive document outlining its programme for governing over the coming 5 years - including its approach to IR35.

Will the new coalition government abolish IR35 rules?
Many contractors will be wondering how the new coalition government will act on IR35 over the coming months and years.

Contractor successful at IR35 appeal after five year wait
IT contractor, Novak Brajkovic, has won his appeal against an IR35 claim, which was initially triggered via his use of HMRC's own contract enquiry service!

IR35 rules - a guide for IT contractors
A brief guide to the controversial IR35 tax rules, how it affects IT contractors, and how to be IR35 compliant.

Conservatives would review IR35 rules following election win
As part of their pledge to review small business taxation should they win the general election, the Tories have singled out reform of the IR35 rules as a priority.

IR35 factors and the importance of 'control'
A brief overview of how 'control' is an important factor in determining the IR35 status of a contract.

IR35 and the Right of Substitution
The Right of Substitution is an important factor in IR35 / employment status cases, but how can it be used in reality? Why a RoS clause is useless unless it reflects the reality of the contractor's working practices.

Qdosconsulting

Contractor Financials

ESSENTIAL IR35 GUIDES