IT contractors 'left in legislative limbo' by IR35

IT contractors 'left in legislative limbo' by IR35
Many IT contractors are being left in "legislative limbo" by the IR35 tax regulations, it has been claimed.

Assessing whether or not an IT contractor is within IR35 is based on the tests of employment - control, substitution and mutuality of obligation, according to Contractor Calculator.

These are then applied in accordance with the latest case law, but the website notes that difficulties arise because case law is continually evolving.

Case law can suddenly jump off in any direction, leaving IT contractors suddenly unsure where they stand.

"The tests as they stand are far too complex. Too many of those in the grey area are on HMRC's radar and shouldn't be, while too many of those who really are disguised employees get away with it," Contractor Calculator notes.

IT contractors were recently given a boost in their bid to get a more workable tax system when it was announced that PCG chairman Chris Bryce had been invited by the Office for Tax Simplification to consult on the proposed replacement for IR35.
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