Contractors welcome IR35 promise

Contractor representatives have backed the government's promise to review IR35, the much-maligned legislation which sets out how freelancers are taxed.

The rules, introduced to foil tax avoidance, have been described by advisers as complex and onerous for both the taxpayer and for HMRC. Some cases have been known to go on for seven years.

This week, assurances have been given by the Lib-Cons to review IR35 and seek to replace it with simpler measures that prevent tax avoidance, "but do not place undue administrative burdens or uncertainty on the self-employed, or restrict labour market flexibility."

John Brazier, managing director of the Professional Contractors Group welcomed the move. He said: "We are delighted that the new coalition government made this commitment to review IR35 as a priority only days after taking power.

"With the end of the iniquitous IR35 we have the opportunity to achieve fairness.

“PCG has led the way in seeking the abolition of IR35 on behalf of our members. It has caused great heartache to many people. The cost in distress has been high, but the revenue for HMRC has been minimal."

Further reading:

PCG expects IR35 to be dealt with after election

Politically incorrect

Drop IR35 in PBR, pleads contractor group