Wait for scrapping of IR35 'is not all bad'

IT contractors should not expect to see the end of IR35 legislation any time soon, it has been claimed.
The coalition government has given repeated assurances to IT contractors that the tax code will be reviewed and replaced with something simpler, while chancellor George Osborne recently established the Office of Tax Simplification (OTS), to straighten out the "spaghetti bowl" that is UK taxation.
Yet the head of this new department Jon Whiting has told Contractor Calculator that the possibility of having it repealed in time for the 2011 budget is "optimistic" as it will take to address the whole taxation issue.
But this is not all bad news for IT contractors, according to Contractor Calculator's chief executive officer Dave Chaplin.
"I'm pleased to see that the OTS seems to want to do things properly, and if that means it takes a few more months of IR35 than we'd ideally like, it's worth it to avoid what Whiting calls a sticking plaster solution," he explained.
