IR35 to be reinforced with PSC anti-avoidance measures from 2013

Contractors may be facing new anti-avoidance measures next year according to the Budget document, which says:

"The Government will introduce a package of measures to tackle avoidance through the use of personal service companies and to make the IR35 legislation easier to understand for those who are genuinely in business."

The Budget document goes on to say: "This will include:

• strengthening up specialist compliance teams to tackle avoidance of employment income;
• simplifying the way IR35 is administered; and subject to consultation,
• requiring office holders/controlling persons who are integral to the running of an organisation to have PAYE and NICs deducted at source by the organisation by which they are engaged."

Further information and analysis will be published when it becomes available.