Treasury Minister Gives IR35 Forum Support

The future of IR35 legislation took a positive step forward last week, as the recently formed IR35 Forum, the group set up to scrutinise the current IR35 system, held their first meeting. The IR35 forum was established following the Office of Tax Simplifications review of Small Business Taxation, with groups including the REC and PCG actively involved.

Those concerned about IR35 were also boosted by a commitment from the Exchequer Secretary to the Treasury, David Gauke, to work to improve the legislation. He said;

“I understand the professional contracting community has concerns about the ability and willingness of HMRC to make substantial improvements in the way it administers IR35, but I know that HMRC is committed to a complete overhaul of the way IR35 is administered to address these concerns.”

“Put simply, I see this as an issue we have to get right if the tax system in this area is to be fair and if professional contractors are to be able to provide their services in the most appropriate way.”

He continued by stating his delight at being able to work with the PCG and move forward. The PCG’s chairman, Chris Bryce echoed these sentiments and spoke about his aims for the forum following 11 years of “major difficulties” for contractors and freelancers. He said;

“With the IR35 Forum, we have a chance to make a real difference to the uncertainty around IR35 and issues such as the unacceptable length of many IR35 investigations. We take this challenge very seriously and are determined to deliver clarity, transparency and consistency for our members and the freelance community.  We are determined to clean up HMRC’s administration of IR35 once and for all.”

Gillian Econopouly, the REC’s Head of Policy, said that they too were pleased to be able to participate with the IR35 forum, and was also reassured to hear about the support of Mr Gauke.

“Whilst we would have preferred to see a more drastic reform of IR35, this Forum does create an opportunity for genuine improvements. We are committed to putting forward members’ views on how best to improve the system, and working with the Forum to establish more certainty for contractors, their hirers, and the recruiters that find them work.”

ICS work with a team of experts in employment and tax law to ensure our services are fully compliant with existing IR35 legislation and the latest government regulations. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.