IR35 'complex and ill-defined'

IR35 'complex and ill-defined'
The IR35 tax rules have been branded "complex and ill-defined" by one expert, no doubt reflecting the views of many contractors.

Gerry McLaughlin, of ITContractor.com, said the government wanted to make sure that "disguised" employees were fully taxed and unable to claim for expenses that other businesses can.

He claimed the government "threw a nail bomb" at the issue instead of "using a laser gun".

"Even the paymaster general at the time said that the legislation had caught many contractors that it hadn't been intended to catch. It wasn't just the contractor's way of working that defined it. A contractor could be IR35 liable on one contract and not on the next," Mr McLaughlin elaborated.

These comments could after a survey by the Recruitment and Employment Confederation (REC), which found that more than 90 per cent of recruiters in sectors affected by the IR35 tax rules believe they are not effective and should be reformed.
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