An accountancy firm has delivered strong words on the government's position on IR35, which will effect contractors and freelancers in the UK when it comes into force.

In the Budget last week, George Osborne set out plans to keep the tax regime as it is, but set up a dedicated helpline staffed by specialists and restrict their reviews to high-risk cases.

Meanwhile, an IR35 forum will be established to monitor the approach of HM Revenue & Customs.

However, Nigel May, tax principal at MacIntyre Hudson, said these are "meaningless measures" that will have no effect on the way IR35 is administered and do not tackle the underlying problems associated with it.

"While it means that some companies can perhaps breathe more easily, knowing that they probably won't be checked, this doesn't solve the IR35 problem," he commented.

"It should have been scrapped and a real test to determine whether someone is employed introduced instead."