Mar
11
2011
Company umbrella contractors told 'certainty needed over IR35'
Posted by Daniel Frost
There have been calls for umbrella company contractors to receive "some kind of certainty" over IR35.
By doing this, people affected by this controversial legislation will be granted a better chance of knowing where they stand in terms of liability and tax status.
This is according to Gerry McLaughlin, of ITContractor.com, who was speaking after the Office of Tax Simplification (OTS) released its Small Business Tax Review, which outlined how IR35 can be handled.
A standout feature of the report was a call for an integration of income tax and national insurance contributions, as this strategy could mean IR35 is no longer required.
Mr McLaughlin highlighted the need for change in this legislation, stating: "[IR35] spawned a whole load of court cases and special and general commissioner judgments which sometimes pointed in favour of the contractors and sometimes in favour of the taxman."
By pursuing these cases, the taxman racked up a "great expense", the expert said, adding there are many ways of distinguishing if a contractor is a disguised employee.
There have been calls for umbrella company contractors to receive "some kind of certainty" over IR35.
By doing this, people affected by this controversial legislation will be granted a better chance of knowing where they stand in terms of liability and tax status.
This is according to Gerry McLaughlin, of ITContractor.com, who was speaking after the Office of Tax Simplification (OTS) released its Small Business Tax Review, which outlined how IR35 can be handled.
A standout feature of the report was a call for an integration of income tax and national insurance contributions, as this strategy could mean IR35 is no longer required.
Mr McLaughlin highlighted the need for change in this legislation, stating: "[IR35] spawned a whole load of court cases and special and general commissioner judgments which sometimes pointed in favour of the contractors and sometimes in favour of the taxman."
By pursuing these cases, the taxman racked up a "great expense", the expert said, adding there are many ways of distinguishing if a contractor is a disguised employee.