IT contractors 'should be cautious' over IR35 review

IT contractors should not be celebrating the end of IR35 tax legislation just yet, it has been claimed.
In the coalition's Programme for Government, it promised a thorough review of IR35, promising to replace it with a simpler system that does not place "undue administrative burdens or uncertainty on the self-employed, or restrict labour market flexibility".
However, ContractorCalculator.co.uk warns that IT contractors should wait until the specifics of the new system are revealed before getting too carried away.
The website's chief executive officer Dave Chaplin said that while it is true that the uncertainty surrounding the legislation is likely to disperse, other issues may arise as a result.
"Greater clarity over contractors' status might come at the expense of more contractors paying more tax," he said.
The government's announcement was trumpeted as a success by PCG when it was made last week, after the lobby group had pressurised the Conservative Party for such a commitment in the build up to the general election.
