Having played a major role in the work of the IR35 Forum since it was formed last year, the REC have continued to work alongside HMRC and the other forum members in order to help clarify IR35 rules for contractors. Their head of policy, Gillian Econopouly gave an update on their progress this week.
The REC have worked with other contractors groups, including the PCG and FCSA, as well as the CIOT in order to develop a new approach to administering IR35 rules. This eventually led to the formation of HMRC’s business entity tests, which were launched despite opposite from some IR35 forum members.
Speaking about their work, Ms Econopouly said, “Our aim has always been to secure more certainty for those who are less likely to be ‘caught’ by IR35 (i.e. liable for additional tax and national insurance payments) because they actually are in business of their own account, and at the same time beef up the targeting and enforcement of IR35 for those who are attempting to play the system.”
She continued to say that “As with any negotiation, we didn’t get everything we wanted from the Forum’s deliberations, but there have been some definite improvements” adding that “the news tests aren’t perfect”. However, the REC hope that the introduction of the new tests will reduced some of the long running IR35 cases which have been very damaging to contractors.
More detail on IR35 and the HMRC business entity tests can be found on our dedicated IR35 resource page, which includes a free downloadable guide
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.