IR35 'will not be abolished'

Date: 9th September 2010

Contractors working in a number of UK industries could be among those interested in one expert's recent comments regarding IR35.

Dave Chaplin, chief executive officer of the advice website ContractorCalculator, has claimed that a current review of the tax measure will not lead to its abolition.

The expert explained that although IR35 forms part of the Office of Tax Simplification's (OTS) review of small business taxation, the need for a similar measure will not be removed.

As such, he warned that contractors currently "caught" by the controversial legislation will be likely to also be caught by its replacement.

"Those who are currently caught by IR35 are very likely to still be caught by whatever replaces it," he warned.

"So, if you are tempted by the erroneous claims that IR35 has been abolished to take the limited company route, or are already a limited company contractor and stop calculating your deemed payment when you know you may be inside IR35 and should be paying taxes like an employee, think again."

Posted by Thomas Fletcher