Contractors might have to hold tight for IR35 review

A review of IR35 is on the cards, but abolition could be too much.

The review of the IR35 provisions may take longer than contractors want, according to one website, which said that at the moment there is not enough momentum to force a review.

FreelanceUK.com reported that there had been some confusion over changes to the legislation and confirmed that some interviews with business minister Mark Prisk had been misrepresented and misleading.

It added that some, like Grant Thornton's head of tax Francesca Lagerberg, had predicted the abolition of IR35 all together, but it said this was an inaccurate claim.

"The review of IR35 is linked to the proposed wider review of small business [tax]. Until the precise terms of reference are agreed, we cannot say much more," the HMRC stated.

PricewaterhouseCoopers' technology assurance partner, Chris Potter, said that IT contractors in retail banking are in a great position because companies are unwilling to commit to large-scale expenditure plans, such as making permanent appointments.