We have been looking at the Appeal that is fast approaching this month and we are receiving various opinions on what exactly will happen and if it will have any effect on IR35.
We also wonder if everyone has merely resigned themselves to the fact that IR35 is with us for good. Here is one persons viewpoint:
Letter from a reader
The important factor is linking employment law with tax law. The two have no bearing on each other. Looking at it objectively, you would imagine that the conclusions of the tribunial would benefit Contractors who work through service companies to state that they are not employees.
I believe that in the industrial tribunials and employment law cases currently discussed in IR35 forums, that contractors would win the argument time after time.
Unfortunately with regards to tax law, which is determined in-country (UK), the Lord Justice presiding over the case has no precedent to influence tax law other than to evaluate whether in context with other tax laws it is reasonable. Rather opinionated really.
My hope is that there is a victory for the PCG and I whole heartily support them. But from the commentary provided for the last hearing, and maintaining the perception that the Lord Justice completely understood how contractors work in context to permanent employees, I had great hopes. Unfortunately the ruling was far short of anything useful to an IT contractor.
I think it will take a number of companies going through the courts on tax law cases before we find how stable IR35 is. Any volunteers....?
Expected result IR35 2 - Small Business 0 - Sadly
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