IT contractors reminded of need to be IR35 vigilant

IT contractors reminded of need to be IR35 vigilant
IT contractors have been reminded that although IR35 tax legislation is to be reviewed, it is still being enforced.

While the coalition government has remained firm on its commitment to review IR35, so has its commitment to stopping tax avoidance, says Contractor Calculator's Dave Chaplin.

As such IT contractors must be aware that HMRC will still be looking to take action against anyone seen not to be complying with the existing legislation.

In addition, contractors have always been seen as "high yield" targets, making them prime candidates for IR35 investigations.

Mr Chapin explained: "We've finally got an administration that acknowledges the unfairness of the current tax legislation.

"But IR35 is still in force and is set to remain so until at least the next budget in April 2011."

Chancellor George Osborne recently launched the Office of Tax Simplification to sort out the "spaghetti bowl" of tax codes used in the UK.ADNFCR-2994-ID-19918197-ADNFCR
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