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The government has no plans to abolish IR35. Instead, you have an opportunity to comment on how to reform the legislation.

Intermediaries Legislation (IR35): discussion document highlights that the abolition of IR35 is not considered to be an option for the government but that the legislation needs to be straight-forward and easier to understand and apply.

The door seems to be open for a fundamental reform and comments are invited to be received by the end of September. The key points for discussion are:

Views on the current IR35 system; specifically:

  • any evidence on the use of other types of intermediaries, aside from PSCs, to which IR35 may apply
  • any evidence on how PSCs currently operate IR35 and the issues the rules create for individuals and businesses across the market.

Views on options for reform; specifically:

  • any proposals for how to improve the effectiveness of IR35 that meet the objectives outlined in this document
  • any views on the implications of a change in the test which determines whether IR35 applies, both positive and negative, and what stakeholders’ preferred approach would be
  • any views on the potential option outlined in this document which would result in the engager taking on a greater role in being responsible for operating IR35, including:
    • whether such an approach would be effective in achieving the objectives outlined in this document
    • how it could be made as straightforward as possible for engagers to determine whether IR35 should apply as part of their routine hiring conversations
    • whether there are particular sectors or types of engagers which would face particular challenges
    • how such an approach should work where a PSC is engaged by an individual rather than another business, and if there should be different rules which apply in these circumstances
    • any other views on the impacts of such a change and how they might be addressed to minimise any additional burden on engagers.

Article contributed from ACCA InPractice