IR35 Expert Discusses Minutes From IR35 Forum

The IR35 forum, which consists of members of the Office of Tax Simplification as well as experts from recruitment body APSCo, the PCG and the REC, last month held their first meeting, which HMRC have recently released the minutes from.

Some of the main issues and topics of conversation included the expansion of Customer Segmentation, improvement to HMRC compliance with IR35 and their planned helpline. They also discussed a Gateway Test, which appears to be the evolution of the proposed and rejected business tests from the original OTS review.

Kate Cottrell, one of the IR35 experts on the forum, was happy that the inaugural meeting was positive and covered a lot of ground, though she stressed that there is still a lot more work to do. She said;

“For the first time since IR35 began we have a central point for contact with HMRC, who have the appetite and the power to ensure consistent treatment and processes for dealing with IR35 across the country.”

She also spoke about the plans to expand the customer segmentation model; which will aim to make it easier to recognise the distinct customer group of employers and so, make identifying those who are affected by IR35 much easier.

“Providing we can iron out the detail for customer segmentation, those potentially affected by IR35 will be able to establish their level of risk of IR35 investigation.”

In summary, Ms Cottrell said; “Whatever the difficulties I hope we will end up with good workable guidance, transparent HMRC processes and peace of mind for as many people as possible.”

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.