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Posted by John Crawley

The fact that IR35 is being reviewed does not necessarily mean that the legislation is going to be abolished, an expert has stated.

John Whiting, tax director at the Office of Tax Simplification, has told Taxation that the small business review has led to many people believing that IR35 is going to be repealed but this will not necessarily be the case.

He said that it is important to consider the problem as a whole, which could include revisiting the distinctions between sole traders, employees and companies.

"We might have to come up with an initial report that says we've got to look at the whole thing to make a real impact," he warned.

Mr Whiting added that it is important not to add "another bit of sticking plaster" to a system which is already fairly "ramshackle", but that this does not necessarily mean that IR35 will not remain in place.

Earlier this month, Simon McVicker, head of public affairs at the PCG, claimed that the coalition government is not in a great position to tackle some of the problems which have been created through the introduction of IR35.