IT contractors 'need new IR35 status tests'

IT contractors 'need new IR35 status tests'
New status tests are badly needed to provide IT contractors with more certainty around IR35 tax legislation, it has been claimed.

The current system is a muddle that means that IT contractors and HM Revenue and Customs themselves spend an unnecessary amount of time looking at their liability, according to Contractor Calculator's chief executive officer Dave Chaplin.

With IR35, there is a very real danger for genuine contracting businesses that they will get caught up by the current status tests, Mr Chaplin claims.

He added: "It is vital that client organisations have access to a pool of highly skilled, experienced and flexible workers.

"So new IR35 status tests that catch genuine contractors in the IR35 web would directly damage UK PLC."

Recruiter.co.uk recently reported that IT contractors could be facing a crackdown from HM Revenue and Customs, as the tax authority looks to increase its income in light of public sector cuts.
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