Mar
21
2011
IR35 'cannot be ignored in Budget'
Posted by Sarah Putt
Company umbrella contractors have been told that it would be "simply not acceptable" if the chancellor declined to comment on the future of IR35 in this week's Budget.
George Osborne is set to detail disclosures from within the Treasury this Wednesday (March 23rd), with the announcement of merged National Insurance Contributions (NIC) and income tax payments expected by many.
However, Andrew Hubbard, president of the Chartered Institute of Taxation, and tax director at accountancy firm RSM Tenon, believes that those with umbrella companies need to know what effect this will have on IR35 legislation.
He explained: "It is important that he indicates whether IR35 will be suspended or if improvements will be made to the way in which it is administered, whilst the idea of merging the PAYE and NIC systems is considered in the long term."
There has recently been some negative reaction to the idea of combining income tax and national insurance, though.
Ann Swain, chief executive of the Association of Professional Staffing Companies, believes that such a move "would erode the tax advantages of contracting".
Company umbrella contractors have been told that it would be "simply not acceptable" if the chancellor declined to comment on the future of IR35 in this week's Budget.
George Osborne is set to detail disclosures from within the Treasury this Wednesday (March 23rd), with the announcement of merged National Insurance Contributions (NIC) and income tax payments expected by many.
However, Andrew Hubbard, president of the Chartered Institute of Taxation, and tax director at accountancy firm RSM Tenon, believes that those with umbrella companies need to know what effect this will have on IR35 legislation.
He explained: "It is important that he indicates whether IR35 will be suspended or if improvements will be made to the way in which it is administered, whilst the idea of merging the PAYE and NIC systems is considered in the long term."
There has recently been some negative reaction to the idea of combining income tax and national insurance, though.
Ann Swain, chief executive of the Association of Professional Staffing Companies, believes that such a move "would erode the tax advantages of contracting".