With the date for the tax submissions having passed there is supposed to be a clarity and concrete feel about the legislation surrounds ir35 but yet the confusion is still here and it seems, will be for a while.
The Mail on Sunday printed an article on 8th April which implied that there was still a great deal of uncertainty surrounding ir35. The article angered the revenue and a statement was issued by revenue chairman Nick Montagu. He stated that the court had upheld ir35 and that it was now valid law and people should comply or face the penalties.
This also meant that the penalties for late payments would be enforced and all those caught by ir35 should have had their affairs in order by 19th April. Montagu’s statement unfortunately does not alleviate the confusion surrounding ir35. The Legislature still does not stop the wording from being misleading and thus we are still left with guidelines that need to be quickly revised. It seems that until these guidelines have been revised we will still be dealing with the piece of legislature that leaves us in the dark. Revenue of course has supplied us with their web address just in case any clarity is needed!!!!
Most people who have mailed in comments are not satisfied with Montagu’s statement, they seem to think that he has merely stated that law again and has not looked at the real complaint that being that the guidelines have not been revised and the consequences are certainly being felt.
Paymaster Dawn Primarolo has responded to questions about the guidelines stating that “The Inland Revenue will review the guidance material used by it’s staff”. This it seems is another comment in an effort to steer around the real subjects such as Employee Benefits which has yet to be addressed.
So it seems that many people are still confused by ir35 and that a good portion of the contractors out there have merely taken a stance whereby they are ignoring their liability and not wanting to recognise that they are indeed caught by ir35, this it seems would not be the best stance to take.
The PCG Takes Case to Appeal
On the subject of judicial review, after the disappointing verdict the PCG has now vowed to carry on the struggle and take the case directly to the court of appeal. The case could then be referred to the European court to decide on the EU legal points put forward by the PCG.
Gareth Williams said that the appeal could take up to two years, but the fact that so much confusion still surrounded ir35 made it a priority in the groups agenda so that people could be equipped with as much clarity as could possibly be provided.