IT contractors counting down the days until IR35 tax legislation is scrapped have been warned that it will not disappear immediately.

Andy Vessey of Qdos Consulting has told Contractor Calculator that IT contractors must keep their IR35 system in order long after the legislation changes.

This is because any contracts worked on up until the legislation changes will still need to confirm to the old rules, whatever the change is.

Mr Vessey adds that this gives HMRC plenty of time to launch an intrusive IR35 investigation should they feel it is necessary in future.

"Contractors be hit for large back taxes, interest and penalties if found inside IR35 … this can go on for six years after it is repealed – if, in fact it is," he concluded.

Contractor Calculator's chief executive officer Dave Chaplin recently said that although tax rules may not be changed for some time, it is better that the government takes time to get legislation right, rather than rush things like they did with IR35.