HMRC to employ 'less combative' approach

Date: 27th August 2010

Small business owners operating in the UK could be among those encouraged by a recent announcement regarding HM Revenue & Customs (HMRC).

In a recent interview with the Financial Times, permanent secretary for tax Dave Harnett said that HMRC is to adopt "a less combative approach to resolving tax disputes with businesses".

It has also been suggested that sole traders could be among those to benefit from the new approach.

Advice website ContractorCalculator has claimed that there could now be a reduction in the number of "long, drawn-out" IR35 cases.

Dave Chaplin, the organisation's chief executive officer, commented: "This move could signal the taxman focusing more on those contractors clearly within IR35, rather than trying to make case law with more complex, expensive litigation.

"So it remains as important to be IR35-aware as it has ever been."

The news follows the creation of the Office of Tax Simplification, which is currently carrying out a wide review of the UK's small business tax system.

Posted by Thomas Fletcher