What the 2012 Budget says about IR35

IR35 reform has been on the cards for near enough a year now, ever since the Office for Tax Simplification’s Small Business Taxation Review�and the 2011 Budget. Since then the IR35 Forum has been formed to oversee the reforms, involving civil servants from HMRC, senior members of the PCG, and various employment experts. Despite numerous meetings, the Forum has not yet made any impact on the troubled IR35 enforcement landscape – although the 2012 Budget document may shed some light on what form the changes may take. The document says (on page 78, if you care to peruse it yourself): Personal service companies and IR35 The Government will introduce a package of measures to tackle avoidance through the use of personal service companies and to make the IR35 legislation easier to understand for those who are genuinely in business. This will include: Strengthening up specialist compliance teams to tackle avoidance of employment income; Simplifying the way IR35 is administered; and Subject to consultation, requiring office holders/controlling persons who are integral to the running of an organisation to have PAYE and NICs deducted at source by the organisation by which they are engaged. (Finance Bill 2013) The final point is probably [...]

Source: http://www.freelanceadvisor.co.uk/legal-advice/what-the-2012-budget-says-about-ir35/

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