Mar
10
2011
Company umbrella contractors told of possible IR35 strategies
Posted by John Crawley
The Office of Tax Simplification (OTS) has told contractors who are working with umbrella companies of how IR35 tax rules could be changed.
In its interim report on the Small Business Tax Review, the body has called for HM Revenue and Customs (HMRC) to either better enforce or suspend this controversial legislation.
John Whiting, tax director for the OTS, noted: "We've suggested ways forward on the thorny issue of IR35, though it's clear there is no easy solution there."
Suspending IR35 legislation is the favoured choice of PCG, the membership organisation for contractors and freelancers.
However, another strategy would be to keep IR35 as it is, but "with explicit commitments from HMRC to make specified changes to the enforcement of the legislation", the report noted.
The OTS's advice on this subject comes as the government is preparing to announce its plans for IR35 going forward, with today's (March 10th) publication of the decision sure to interest company umbrella contractors.
The Office of Tax Simplification (OTS) has told contractors who are working with umbrella companies of how IR35 tax rules could be changed.
In its interim report on the Small Business Tax Review, the body has called for HM Revenue and Customs (HMRC) to either better enforce or suspend this controversial legislation.
John Whiting, tax director for the OTS, noted: "We've suggested ways forward on the thorny issue of IR35, though it's clear there is no easy solution there."
Suspending IR35 legislation is the favoured choice of PCG, the membership organisation for contractors and freelancers.
However, another strategy would be to keep IR35 as it is, but "with explicit commitments from HMRC to make specified changes to the enforcement of the legislation", the report noted.
The OTS's advice on this subject comes as the government is preparing to announce its plans for IR35 going forward, with today's (March 10th) publication of the decision sure to interest company umbrella contractors.