A simpler alternative to IR35 is at the heart of the new Office for Tax Simplification, launched today by the Treasury.

Chancellor George Osborne described Britain's tax system as a "spaghetti bowl", which includes one of the "most complex and opaque tax codes in the world".

The new office will report to Mr Osborne what aspects of the tax system hinder small business users the most, as well what the implications of any simplification measure would be.

IT contractors will be glad to see the end of the restrictive and frustrating legislation, claims advice site Contractor Calculator.

However, it must be noted that whatever alternative is produced will still be stringent tax code.

"Naturally, any simplification will need to provide an alternative regime to tackle the tax avoidance IR35 was originally set up to tackle," said the website.

A review of the IR35 system was promised by the coalition in their Programme for Government shortly after the election.