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...
Published: Wednesday, March 23, 2011
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