The controversial 'off-payroll' IR35 rules has hit the headlines as HMRC continues to pursue high-profile television personalities with mixed results.
Recent cases have included a victory for football presenter, Gary Lineker, and a costly defeat for TV presenter Eamonn Holmes as they faced IR35 legal challenges from HMRC.
The legislation has been widely criticised as confusing and inconsistent. Now agency group, APSCo has identified the unfairness of a 'double taxation' issue and called for an off-set to rectify the situation.
Tania Bowers, Global Public Policy Director at APSCo said: "APSCo has long been vocal over the reforms that are needed to ensure Off Payroll legislation doesnít unfairly penalise both recruitment firms and highly skilled contractors.
"We continue to work closely with HMRC on changes to the rules including potential solutions to the double taxation that is inherent in the current rules.
"In its current form, Off Payroll legislates that HMRC can collect tax from the worker via corporation and personal taxes, and then recover full PAYE and NICs from the fee payer in the event of a reclassification. This is leading to recruiters and clients being unfairly taxed.
"While we anticipate news on a possible consultation om this matter will be unveiled in Spring, we stand by our view that Off Payroll itself is having a detrimental impact on the UKís flexible labour market. Off Payroll has exacerbated the shortage of skilled professionals, as many left the market during or following the roll out of the rules, not wanting to change the way they work. This has consequently decreased the flexibility and agility of the labour supply chain at a time when skills are in increasingly short supply.
"We believe wider reforms are needed and will continue to work closely with HMRC to guide any future developments on behalf of the staffing sector."
Further IR35 information
For more information about all aspects of IR35, including other high profile cases see Shout99's News on IR35 section.
For more information about the recent high profile IR35 cases, see:
TV presenter Eamonn Holmes loses IR35 battle with tax man - Shout99, April 23
Gary Lineker wins £5 million IR35 fight with taxman - Shout99, March 23
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Susie Hughes © Shout99 2023