With the political party conferences currently taking place, starting with the Liberal Democrats this week, there has been an opportunity for the coalition government to strengthen their position on a number of current issues. One of those speaking at the Lib Dem conference in Brighton was the Chief Secretary to the Treasury, Danny Alexander.
Following the governments review into the use of public sector contractors, including cases such as the BBC, as well as their efforts to cut down on general tax avoidance. The scandal that followed the case of head of the student loans company Ed Lester has led to an overall change in government policy when dealing with contractors and those working through limited companies.
Danny Alexander spoke about how the government shut down the “scandalous situation” which saw thousands of public sector workers paying little tax due to the way they were engaged with the government. He said; “Rules are now in place to stop that happening – based on the simple principle that if you’re being paid public money, you should pay your taxes.”
Mr Alexander called for an end to firms who “don’t play by the rules” in terms of paying tax when it comes to carrying out government contracts. He stated that; “Taxpayers’ money should not be funding tax dodgers. So I have tasked HMRC and the Cabinet Office to come up with a workable solution to this problem and we will set out more details later this year.”
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.