Mar
08
2011
Those with umbrella companies told 'IR35 is ineffective'
Posted by John Crawley
A new survey has revealed to contractors with an umbrella company that many people see IR35 tax rules as ineffective.
Research by the Recruitment & Employment Confederation (REC) indicated that nine in ten recruiters hold this view.
When questioned about what needs to be done to improve legislation, nearly half said that it should be abolished altogether, while another 38 per cent opted to ask for adjustments, to give company umbrella contractors a clearer picture of the rules.
In fact, just 2.7 per cent have called for the IR35 tax rules to remain in its current form, highlighting the widespread dislike of this controversial area of law.
Jeff Brooks, the chair of REC Technology, commented: "IR35 has been an awkward, unsatisfactory attempt to tackle the problem of disguised employment ever since it was set up in 1999."
IR35, or the Intermediaries legislation, was first introduced to contractors on April 6th 2000, after being proposed in the previous year's Budget.
A new survey has revealed to contractors with an umbrella company that many people see IR35 tax rules as ineffective.
Research by the Recruitment & Employment Confederation (REC) indicated that nine in ten recruiters hold this view.
When questioned about what needs to be done to improve legislation, nearly half said that it should be abolished altogether, while another 38 per cent opted to ask for adjustments, to give company umbrella contractors a clearer picture of the rules.
In fact, just 2.7 per cent have called for the IR35 tax rules to remain in its current form, highlighting the widespread dislike of this controversial area of law.
Jeff Brooks, the chair of REC Technology, commented: "IR35 has been an awkward, unsatisfactory attempt to tackle the problem of disguised employment ever since it was set up in 1999."
IR35, or the Intermediaries legislation, was first introduced to contractors on April 6th 2000, after being proposed in the previous year's Budget.