The government’s recent proposals into ‘taxation of controlling persons’ has come under scrutiny from a number of groups representing interim workers and contractors, with freelancing body, the PCG, today giving their response to the new rules.
The PCG, who were undertaking their own review into the legislation, claim to have received a leaked document, outlining the official guidance from the treasury. One of the points raised within this document regards IR35 and the new HMRC tests. It suggests that workers will have to provide assurance that they are outside IR35 if the business entity tests score them as medium or high risk.
The group continue to remind contractors that these new measures for “off payroll” workers in the public sector will be implemented, and that it will be “extremely difficult” to effect a change to any part of the legislation.
The REC and PCG have previously discussed the governments controlling persons taxation plans, and the PCG have confirmed that they will hold further discussions with the REC, as well as APSCo, the Interim Management Association, and the Institute of Directors to “seek a cross-business consensus against these measures” within the private sector.
You can read the PCG’s full update on the Public Sector review and controlling persons’ legislation on their website, which provides an in depth analysis of the legislation as well as raising further observations and questions.
ICS work with a team of experts in employment and tax law to ensure our services are fully compliant with existing IR35 legislation and the latest government regulations, such as the AWR. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.