The Government recently launched a consultation into the double taxation of IR35, which sees HMRC fail to offset tax already paid by a contractor in the event that a business is found to be non-compliant under the off-payroll working rules.
In this document, HMRC states that if the proposals were to be brought forward, it would likely happen in the next tax year.
This has been welcomed by IR35 experts, Qdos. Their CEO, Seb Maley said: “Time is of the essence here. The double-taxation of IR35 is a fundamental flaw of the off-payroll working rules. The sooner the Government introduces this long overdue change, the better for everyone.
“As things stand, HMRC completely ignores the tax already paid by a contractor when it issues an IR35 bill to a business for non-compliance. It’s completely illogical and has resulted in thousands of contractors being unfairly forced onto the payroll.”
Further IR35 information
For more information about all aspects of IR35, including the controversial IR35 reforms see Shout99's News on IR35 section.
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Susie Hughes © Shout99 2022