PracticePeople In Practice‘Cool-off’ period urged.

'Cool-off' period urged.

Shadow chief secretary and accountant MP David Heathcoat-Amory has protested that the government is doing 'massive collateral damage' by cracking down on employees masquerading as independent consultants for tax purposes, write our parliamentary staff.

He said this was ‘a familiar tax avoidance technique’ but complained that by introducing IR35 the government was creating a larger problem.

Shadow treasury minister Richard Ottaway said a new anomaly was being created under which a separate agent employing consultants to work for a large company and paying them a salary would not be subject to IR35’s provisions for running a business, while if the four dispensed with the agent and formed their own company, each taking a 25% stake, they would be hit.

For the Liberal Democrats, Edward Davey said the government had gone beyond chancellor Gordon Brown’s original justification for IR35.

He complained: ‘People who are to all intents and purposes self-employed will be deemed by the Revenue to have employed status because of the contracts they must sign.’

He argued for a three-month ‘cooling-off period’ from the date the Revenue ruled someone who thought they were self-employed is actually employed, before IR35 takes effect.

Related Articles

Is inefficiency stealing your time and money?

Accounting Firms Is inefficiency stealing your time and money?

6m Emma Smith, Managing Editor
CIMA elects new president

Institutes CIMA elects new president

6m Emma Smith, Managing Editor
Transparent currency trade: How to achieve costs visibility

Governance Transparent currency trade: How to achieve costs visibility

6m Emma Smith, Managing Editor
Introduction to KPMG UK’s new leadership team

Accounting Firms Introduction to KPMG UK’s new leadership team

6m Emma Smith, Managing Editor
EY appoints head of UK Infrastructure Asset Intelligence practice

Accounting Firms EY appoints head of UK Infrastructure Asset Intelligence practice

8m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
MHA MacIntyre Hudson advises on management buy-out

Accounting Firms MHA MacIntyre Hudson advises on management buy-out

10m Emma Smith, Managing Editor