IR35: Budget document reveals IR35 is to be "better administered" - not abolished

IR35 Test

During todays Budget speech Osbourne commended the OTS for their excellent work in researching measures to simplify the tax system, referring to 43 tax reliefs that would be cut as part of the simplification process.

However, his speech contained nothing regarding IR35, the details of which can be found in the Budget document, which signals the Governments intention to "better administer" IR35:

Section 2.203 in budget document:

IR35 – Following the publication of the OTS review of small business tax, the Government commits to making clear improvements in the way IR35 is administered. These improvements will include setting up a dedicated helpline staffed by specialists, publishing guidance on those types of cases HMRC view as outside the scope of IR35, targeting compliance activity by restricting reviews to high risk cases and setting up an IR35 Forum which will monitor HMRC’s new approach. The Government has decided to retain IR35, as abolition would put substantial revenue at risk.

IR35 is here to stay for the foreseeable future.

More analysis to follow...


Alliance Accountants

Published: Wednesday, March 23, 2011

© 2014 All rights reserved. Reproduction in whole or in part without permission is prohibited. Please see our copyright notice. If you want to use any content you have seen on this site then please request our media pack and ask for details of our Content Licencing Service.

Inni Accounts


Readers Comments...


  
Bookmark and Share
  
     
  

Latest Site Updates

ContractorCalculator: Contracting news in brief – 1/Aug/2014 ContractorCalculator: Contracting news in brief – 1/Aug/2014

News this week covers: IT contracts increase; OTS employment review; Mayor supports 15 for 2015; day rates top £1,500; & HMRC targets loan schemes.

Contractors may see simpler expenses rules from consultation, but not until post-2015 Contractors may see simpler expenses rules from consultation, but not until post-2015

Contractors can anticipate simpler rules on expenses and subsistence following a new Treasury consultation, but changes won’t happen until after 2015.

Contractors may benefit from OTS employment status review, which could affect IR35 Contractors may benefit from OTS employment status review, which could affect IR35

Contractors could benefit from the findings of a review of employment status initiated by the Office of Tax Simplification, due out for Budget 2015.

Extracting profits tax efficiently from a limited company Extracting profits tax efficiently from a limited company

Contractors can choose from a range of strategies to extract profits tax efficiently from their limited company, explains Abbott Moore’s James Abbott.


  
  

Twitter

Follow Us On Twitter


  
     

  
  

Contractor solutions

Contractor Angels Orange and Gold Accountancy Limited IR35 Test Clever Accounts Accountants Checklist Alliance Accountants Contractors Handbook
  
  

Contractor solutions

Need an accountant?

Comprehensive service for £59 per month. Call now for a FREE consultation.

Contractor Angels

More than just an Umbrella. Retain up to 90% of your earnings.

Parasol

The UK’s largest employment organisation - 0% risk, 100% compliance

InTouch Accounting

Perfect mix of technology & personal service for only £92 per month.

Contractor Accountant

Free consultation, incorporation and IR35 reviews. Find out more…

Clever Accounts

Complete contractor accounting service. 24/7 online access. £69 pm!

NA D J Colom Accountants Bedouin Group Contractor Financials NewsNow
  
Caprica Accountants Contractor Angels Contractor Insurance Life Insurance

  

The UK's leading contractor site. Independently audited traffic (ABC) – 131,456 monthly unique visitors.