New Government Forum Aims to Help Administer IR35 Better!
Following the 2011 budget, George Osborne announced that IR35
was staying put but that it was going to be better administered.
The government has kicked this off with the
announcement of a new forum which they are currently running via
the PCG (Professional Contractors Group) to enable contractors to
voice their opinions. This decision was made
following a conference held on the 6th April attended by
the PCG and several other experts.
Alongside this forum, the government has promised to set up a
dedicated help line to be staffed with specialists to help
contractors who are in need of advice or clarification on the
legislation. They are also set to publish guidance on those
cases that HMRC consider outside the scope of IR35. HMRC will
be restricting their reviews to 'high risk' cases only and further
clarification on 'high risk' cases will hopefully be provided
too.
It is a common understanding among the freelancing community
that HMRC's way of dealing with IR35 isn't often ideal and in many
situations the general feeling is that HMRC inspectors need to be
better educated and trained in IR35. Long drawn out battles
really shouldn't exist. HMRC officials have however
admitted that their performance in IR35 reviews needs to "improve
considerably", which is a step in the right direction!
John Brazier, Managing Director of the PCG said "It is vital
that freelancers are properly represented at this juncture. We have
been assured that far from being a 'talking shop' the new Forum
will be a positive force for change. PCG has already put forward
initial thoughts on how the Forum should work to revamp IR35. We
will continue to develop these ideas in conjunction with our
membership."
This forum will be a great way for contractors to have some
input into how they feel the system can be changed for the better
and who better to take advice from than the very individuals who
are and have been affected by it first-hand. If this forum
works, it can only achieve good things!