TaxPersonal TaxVerdict on IR35 remains ‘solid’

Verdict on IR35 remains 'solid'

Tax experts this week described the original High Court ruling on IR35 as solid amid growing pessimism that the Professional Contractors Group will be successful in its appeal.

The PCG announced it would appeal the decision on Tuesday and continues to claim the unpopular tax measure is illegal under European law.

But John Whiting, a tax partner with PricewaterhouseCoopers and president of the Chartered Institute of Taxation, indicated the PCG’s effort is unlikely to succeed.

‘This doesn’t surprise me but I still feel they will be stuck with the decision that they got,’ he told AccountancyAge.com.

‘I can’t see the court overturning it,’ he added.

Another expert said that apart from some criticism of the Inland Revenue, the High Court ‘robustly’ supported the government’s ‘sovereign’ right to introduce IR35.

The PCG, however, this week stood by its decision to appeal against March’s High Court ruling. ‘It wasn’t a ruling in which there was no light for the PCG,’ said Susie Hughes, group spokesperson. ‘We’ve always felt we have a good case.’

Links

Contractors to battle on against IR35

IR35 area

Contractors defeated in IR35 battle

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