Disappointingly, still no announcement on IR35.
The accountancy profession, and the contracting industry, had hoped for at least some indication on where IR35 was heading, but nothing!
The Office of Tax Simplification, set up by the coalition government in 2010, had stated that it was making a review of IR35 one of the key planks of the review of small business tax; indeed IR35 was identified as an important part of the review of small business taxation by the Treasury when the office was first set up.
In setting up the OTS, the government indicated that it would seek to replace it with simpler measures intended to prevent tax avoidance, but which do not place undue administrative burdens or uncertainty on the self employed or restrict labour market flexibility. Seems we will all have to wait longer for any further announcements.
In the meantime, our message is clear – continue to look over your shoulder, ensure that you keep your company as IR35 compliant as possible, and, if you dont already have it, think about tax enquiry insurance. Until such time as we hear to the contrary, IR35 is still alive and kicking!