Umbrella company contractors will be interested to hear that the REC is joining the Office of Tax Simplification. REC officials will now join a number of other legal and tax experts on the small business consultative committee.
The OTS is currently undertaking a review of small business taxation in the UK. One area it is concentrating on is the IR35 legislation which has dogged contractors ever since it was first introduced in April 2000. Hopes are high that the OTS will be able to come up with a system that is less complex for small businesses.
The REC’s head of policy, Gillian Econopouly, said the REC is delighted to join this committee and have the opportunity to represent its members in such an important forum. This is a critical time for the recruitment industry and the economy as a whole and the Confederation will use this new opportunity to promote a more transparent and navigable tax system for businesses and SMEs, she added.
It is expected that the OTS will publish the initial findings of its tax review, including IR35, before the budget in March. After running a series of road shows around the country, the Office of Tax Simplification discovered that feelings ran particularly high over this particular piece of legislation and contractors throughout the UK will no doubt be hoping to see its demise very soon!
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