IR591 is once again in the news, and rumours abound that it will replace IR35.
ContractorUK reported last Friday that they had information from a close treasury source that IR35 would be abolished in April and replaced by IR591.
AccountingWeb reported on that story but they state that '..So far the Treasury has been unable to confirm or deny the above or to provide any further information to TaxZone, despite repeated calls to its press office and promises to get back to us.'
Thus, we still have no categorically confirmed facts of exactly what the IR591 proposals will be or when they will be introduced, or whether they will replace IR35.
However, whilst IR35 was introduced to ensure a fairer tax system, rumours indicate that the Inland Revenue have spent more on managing the tax than they have actually collected. It has been unworkable and most ineffective. The chances are looking more likely that it will be replaced by something much simpler to implement. This is purported to be one of the reasons for IR591.
As soon as we find out something concrete from the Inland Revenue on IR591 we will let you know.