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Exchequer Secretary promises real improvements in IR35 administration

Posted May 5, 2011

In a forthcoming article, the Exchequer Secretary has acknowledged the role contractors play in the business community, and says that HMRC is committed to completely overhauling they way it administers IR35 following the recent Budget recommendations.

When presented with three options for the future of IR35 at the last Budget, the Government opted to keep the rules in place, but pledged to improve the way the legislation is administered. In addition, an IR35 forum has been set up to oversee these changes.

David Gauke MP, writing in the May issue of the PCG's 'Freelancer Matters' magazine, says that he understands the concern many contractors have about HMRC's ability to overhaul the way it deals with IR35 cases, but believes that the forum will be an effective way of monitoring the success of the new procedures:

"Members of the Forum will be in a position to influence the development of a new strategy, monitor HMRC's delivery and report back to HMRC through the Forum contractors first hand experiences of HMRC's new administration."

The first meeting of the new forum will take place on the 6th May, and will include representatives from across the contracting industry and beyond, including the PCG and REC (Recruitment & Employment Confederation).

Any Contract Eye readers who are interested in reading the full David Gauke article should visit freelancingmatters.com.

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