16th August 2010

IR35 replacement legislation ''must be clearer and more certain''

IR35 legislation must be replaced by something clearer and more certain, an expert has claimed Clarity and certainty are two key areas that any replacement for IR35 must offer.

Any replacement to IR35 legislation is likely to be designed to be simpler and to provide a greater level of certainty than the current arrangements, an expert has claimed.

Seb Maley, freelancer services manager at Qdos Consulting Limited, has told ContractorUK.com that the Office of Tax Simplification (OTS) will be considering alternative legislative approaches that, while preventing people using personal service companies to disguise employment, will remove some of the faults of IR35.

He said that the government's interest in the way that employment statuses are tested could lead to the boundaries between employment and self-employment being changed.

"It is hoped that this trend will continue and that before any new IR35 replacement rules become legislation they will be offered up for consultation," Mr Maley explained.

Earlier this month, OTS tax director John Whiting told Taxation that the fact IR35 legislation is due to be reviewed will not necessarily mean that it is to be replaced.ADNFCR-3595-ID-800026558-ADNFCR

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