Inland Revenue urged to test IR35 rules

The Professional Contractors Group claimed IR35 contravened European law and the Human Rights Act. The judge dismissed its application on Monday, but criticised the Revenue’s management of the issue.

Campaigners, including IR35 critic Anne Redston, a chartered tax adviser at Ernst & Young, now believe a test case is necessary to clarify how Revenue tests of service companies will work.

‘If it doesn’t happen deliberately what we will see is perhaps a series of cases that might not be conclusive,’ she said.

She believes Revenue officials and the PCG should agree a case that could go before Revenue Commissioners to set a precedent that both bodies could abide by.

There is now concern for many who have failed to make arrangements for testing whether their contracts come under IR35 before the 19 April deadline when the first payments under the rule are due.


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