Concerns raised over Telegraph IR35 abolition comment

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Concerns raised over Telegraph IR35 abolition comment

Posted Jun 24, 2010

With speculation rife about the future of IR35, a leading accountancy site has raised doubts over the coalition's plans to "abolish" the legislation.

Pledges to "review" IR35 have been made in the pre-election Conservative manifesto, the initial coalition agreement document, and also in the Budget itself, however doubts have been raised about the accuracy of comments published this week in The Telegraph, which implied that that IR35 is going to be "abolished".

The article, published this week by The Telegraph stated:

"Individuals selling their services through small companies have their taxable income policed by the so-called IR35 legislation.

This will now be abolished, small business minister Mark Prisk said."

However, today leading accountancy news provider, AccountingWeb, quoted a spokesperson from the Department of Business Innovation & Skills, who stated:

"...the interview with the Telegraph had been conducted some weeks ago and that Prisk had not, in fact, said the legislation would be abolished."

"He just said that they were looking at simplifying the legislation, but that was obviously before the Budget."

You can read the full AccountingWeb piece here (free registration required).

The news provider is waiting for a response from the Treasury on its plans for IR35.

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