TaxPersonal TaxDeadline danger hits IR35 taxpayers.

Deadline danger hits IR35 taxpayers.

Contractors are still waiting for guidance on IR35 from the Inland Revenue before they make tax returns, bringing them dangerously close to the 19 April deadline.

Last week the Professional Contractors Group lost its High Court battle to overturn the hated tax measure but says guidance for IR35 needs changing as a result.

Many contractors are waiting for guidance after putting off early preparations for tax returns, as they expected the PCG, which recently appointed Jane Akshar as chairman, to win its action.

Susie Hughes, PCG spokeswoman, said: ‘Our members have been in a climate of uncertainty for two years. It’s for the Revenue to clarify things.’

A Revenue spokesman said there was criticism in the judgement but no ‘direction’, and so new guidance will not be issued.

But last-minute changes have been made to save taxpayers in the building industry from rates of up to 60%, as they are subject to the industry scheme and IR35.

Many believe much work still needs to be done around IR35, with one high-profile campaigner calling for an urgent test case before Revenue commissioners to establish guidance and rules.

More on contractors escaping IR35 at www.accountancyage.com/News/1120213.

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