Contractors issued IR35 reminder

Date: 2nd August 2010

Contractors working in a number of UK industries could be among those to benefit from a recent warning regarding the controversial IR35 tax legislation.

Advice website Contractor Calculator has reminded taxpayers that the legislation is still being enforced by HM Revenue & Customs (HMRC) despite being looked at as part of the government's review of small business taxation in the UK.

The comments follow a post on the Professional Contractor Group's (PCG) blog, which said that many industry experts believe that IR35 is now "dead on its perch".

In the post, PCG head of public affairs Simon McVicker said that the language used in various government documents regarding the tax rules "strongly suggest" that the IR35 is set to undergo "wholesale" changes.

However, Dave Chaplin, chief executive officer of Contractor Calculator, said: "The coalition government's attitude to tax avoidance is firm, and so is HMRC's need to raise funds for the exchequer, so contractors should not be in any doubt that their compliance with IR35 is essential.

"IR35 is still in force and is set to remain so until at least the next Budget in April 2011."

Posted by Thomas Fletcher