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When do we know when IR35 rules will be changed?

Posted Under: IR35

There's been a lot of talk about abolishing IR35, does anyone know when the rules are going to change?

Answers

On the 07th December 2010, Paul Towndrow answered...
The Coalition Government has made a commitment to review IR35 through the new Office of Tax Simplification (OTS).

The aim of the OTS is to produce a review document in time for the Chancellor to take the contents into account within the preparations for the 2011 budget on March 23rd 2011.

The aim of the review as detailed within the terms of reference, is to ‘simplify’ the existing IR35 rules by devising alternative legislation, that ensures that where intermediaries are used to disguise employment, any income that is effectively employment income is taxed fairly, without placing an undue administrative burden on the genuine self employed.

In short the brief is to provide clarity on the rules surrounding the use of intermediaries (typically limited company structures), whilst maintaining the tax position on disguised employment.

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