Mar
09
2011
IR35 'complex and ill-defined', umbrella company contractors told
Posted by Daniel Frost
Company umbrella contractors have been told that IR35 legislation has been "complex and ill-defined" since it was introduced.
This is the view of Gerry McLaughlin, of ITContractor.com, who believes that such tax rules meant that a host of contractors have been caught out, as a result of the government trying to identify 'disguised employees'.
Furthermore, Mr McLaughlin noted that even the paymaster general has admitted that IR35 has wrongly captured some contractors.
He explained: "It wasn't just the contractor's way of working that defined it. A contractor could be IR35 liable on one contract and not on the next."
The expert's comments follow on from a study by the Recruitment & Employment Confederation, which has highlighted the need for IR35 reform.
Of the respondents, almost half have asked for the legislation to be entirely scrapped, while another 38 per cent called for amendments to be made, as to aid contractors.
Company umbrella contractors have been told that IR35 legislation has been "complex and ill-defined" since it was introduced.
This is the view of Gerry McLaughlin, of ITContractor.com, who believes that such tax rules meant that a host of contractors have been caught out, as a result of the government trying to identify 'disguised employees'.
Furthermore, Mr McLaughlin noted that even the paymaster general has admitted that IR35 has wrongly captured some contractors.
He explained: "It wasn't just the contractor's way of working that defined it. A contractor could be IR35 liable on one contract and not on the next."
The expert's comments follow on from a study by the Recruitment & Employment Confederation, which has highlighted the need for IR35 reform.
Of the respondents, almost half have asked for the legislation to be entirely scrapped, while another 38 per cent called for amendments to be made, as to aid contractors.