IR35 replacement 'must account for subtle worker differences'

A one size fits all approach to replacing IR35 tax legislation will not be a workable solution, it has been claimed.
To get an adequate tax code which caters for the needs of IT contractors, freelancers and consultants, the legislation will have to recognise the discreet differences between them.
This is the view of Kate Cottrell of IR35 specialists Bauer & Cottrell, writing for Contractor Eye.
Ms Cottrell suggests that the new code will have to take into account the rights to state benefits that temporary workers are entitled to under National Insurance rules and the Agency Workers Directive.
"It is only once the status of the different types of worker has been defined that you can begin to tackle disguised employment and tax avoidance with a view to maintaining a flexible workforce," she added.
Nizar Manek, a writer at the London School of Economics, speculated in a blog published by Reuters that IR35 could be replaced with a General Anti-Avoidance Rule "super law".
