IoD 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

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource