Wed, 1 Jun 2011

Government commits to review IR35

The Government has confirmed its commitment to reviewing the way in which IR35 is administered by HM Revenue & Customs.

IR35 legislation is designed to eliminate the avoidance of tax and National Insurance Contributions through the use of intermediaries, but it has caused tax uncertainties for the self-employed.

Last month, exchequer secretary David Gauke told professional freelancers’ organisation PCG: ‘I understand the professional contracting community has concerns about the ability and willingness of HMRC to make substantial improvements in the way it administers IR35, but I know that HMRC is committed to a complete overhaul of the way in which IR35 is administered.’