Category: Employment Law, Taxation and Legislation for Contractors

Contractors have been warned that the abolition of IR35 may not have the results that they are hoping for.

Mark Lee, writing for Fav Stocks, claimed that if this legislation is removed it is likely to be replaced with laws that are equally burdensome, which he dubs the "son of IR35".

He said that any changes that are bought in need to effect a wider range of subjects, including those employers reluctant to take on staff and who instead use freelancers.

Any changes that are made will involve tightening the regulations to ensure that "unscrupulous employers cannot evade their responsibilities and obligations" to their staff.

Mr Lee said that, at the bottom line, IR35 rules will be abolished "but there will be new rules to prevent undue tax avoidance".

Contractors Calculator recently advised those looking at HM Revenue and Customs' website for information on IR35 to check their details with an independent legal expert.

Posted by John Crawley