IR35 'monster' should be slayed, says expert

Date: June 09, 2010

Category: Employment Law, Taxation and Legislation for Contractors

The demise of IR35 would be good news for contractor umbrella companies and freelancers, and should happen soon, it has been said.

IR35 legislation creates uncertainty and hinders financial strategy, according to Seb Maley, freelance services manager at Qdos Consulting.

In an article for Contractor UK, he likened the rules to the Sword of Damocles and said they distract from business growth.

"It is burdensome upon the contractor as time and money have to be spent reviewing contracts, establishing working practices, assembling evidence and taking out protective insurances," Mr Maley pointed out.

Furthermore, IR35 has been unsuccessful in terms of tax yield and HM Revenue & Customs no longer has the resources to police the legislation, he continued.

Now ten years old, IR35 legislation is "tedious" and "not a precise science" and should go, Mr Maley said.

Contractor Calculator last week suggested that bills outlined in the Queen's Speech to reform tax systems could pave the way for a review of IR35.

Posted by Sarah Putt