TaxAdministrationIoD declaims IR35 as a ‘serious problem’

IoD declaims IR35 as a 'serious problem'

Office for Tax Simplification starts IR35 review

John Whiting

The
Institute of Directors
has labelled IR35 as a “serious problem” in its
submission to the Office of Tax Simplification.

The IoD lays out a route for resolving issues with the tax rule that affects
self-employed contractors and says: “Only consultation with a wide range of
affected taxpayers and professional advisers can determine which specific
solutions are even worthy of consideration.”

IR35 is the highly contentious tax rule designed to deal with people that the
taxman considers are disguised employees – they claim self employment but are
otherwise doing a job that is being done elsewhere by salaried employees.

It was introduced in April 2000, has been highly criticised and has been
challenged numerous times in the courts.

The IoD said: “IR35 imposes a burden out of all proportion to its
effectiveness.”

HMRC staff are tied up doing frustrating and often unproductive work, at a
time when HMRC staffing is under pressure and there are more useful things that
the staff concerned could be doing.”

The Office of Tax Simplification is headed by John Whiting, a former PwC
partner and tax policy director at the Chartered Institute of Taxation.

Read more:

The
freelance dilemma

Government
wants to replace IR35

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