Unfortunately IR35 is here to stay. The Government has realised that its abolition would hit tax revenues. It is a shame that the revenue implications outweigh the fact that this was poor legislation which has been poorly implemented. The Government has committed to making clear improvements in the way IR35 is administered, which in itself will not be a challenging target given on where they are starting from. These improvements will supposedly include setting up a dedicated helpline staffed by specialists, publishing guidance on those types of cases HMRC view as outside the scope of IR35, targeting compliance activity by restricting reviews to high risk cases and setting up an IR35 Forum which will monitor HMRC’s new approach. We wait with interest to see what, if anything, happens.
Very interesting post here which suggests that the tax take from IR35 is really quite substantial... as many people simply declare themselves as caught by IR35 and simply pay up. Can't see it being abolished any time soon.
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