DESPITE a rise in investigations and tax take, IR35 has yet to convince Accountancy Age readers of its effectiveness.
Of the 50 polled, 34% felt those abusing personal service companies can expect to be caught, while marginally fewer – 32% – felt the legislation is still “toothless”.
A significant minority of 29% branded the rule “totally ineffectual”, with just 5% seeing a small improvement.
The IR35 legislation is designed to ensure tax and national insurance are not avoided by would-be employees working as freelancers.
Investigations under IR35 have doubled in the past year, yielding £1m for the taxman.
Vote in Accountancy Age‘s latest poll:
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states