TaxPersonal TaxLatest: Ministers make IR35 concessions

Latest: Ministers make IR35 concessions

The government has made concessions in its overhaul of the tax system for personal services companies, but accountants have warned that contractors will only be marginally better off. Today’s move is designed to placate critics of the measures announced in the Budget. The government has withdrawn its previously announced certification scheme and control test. The original measures were designed to prevent people taking advantage of contractors’ tax status when they were to all intents and purposes employed by one company. But critics said the catch-all approach would hurt genuine contractors. However, today’s changes to the now-famous IR35 rules say those who are genuinely carrying on a business should escape. Ernst & Young tax partner Anne Redston said many people would still be caught by the revised rules and they would have to pay extra tax and NIC. Those most affected would be contractors acting as employees of their clients. But overall she welcomed the move. ‘The burdens on business have been significantly reduced and the proposals are much fairer than was orginally proposed,’ she said.

Related Articles

Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

3w Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

2m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

4m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

9m Alia Shoaib, Reporter