12th August 2010

Umbrella company news: IR35 is being reviewed, not necessarily replaced

IR35 is under review but may not be abolished An expert has warned that the fact IR35 is being reviewed does not necessarily mean it will be replaced.

The fact that IR35 legislation is being reviewed does not necessarily mean it will be repealed, an expert has warned.

John Whiting, the new tax director at the Office of Tax Simplification, has told Taxation that the fact that small business review includes this area of law does not mean that it will be abolished by the end of the first week.

"If we're going to make any serious progress we should look at the whole thing," he stated.

Mr Whiting said that the last thing he wants to do is add "another sticking plaster" to what has already become "quite a ramshackle structure" if what is needed is something which is much larger.

He asserted that it could be important to look at the whole relationship between sole traders, employees and companies.

Earlier this month, PCG head of public affairs Simon McVicker claimed that the coalition government is in a unique place to address the issues presented by IR35 legislation.ADNFCR-3595-ID-800023206-ADNFCR

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