Contractors who had hoped to see the demise of IR35 may be interested to learn that the PCG is to be part of the new IR35 Forum.
The government is setting up the Forum to monitor the way HMRC approaches the administration of the onerous regulations. Representatives from the PCG recently met with David Gauke, the exchequer secretary, the Treasury and HMRC to express its concerns regarding the retention of IR35. At the meeting, the PCG emphasised the urgent need to provide clarity, consistency and transparency in IR35 related issues.
The new Forum will have its first meeting within the next month and the PCG will help to draw up terms of reference so that the voice of freelancers can be heard.
Last week, the OTS hosted a conference on tax attended by accountancy firms, the PCG, small businesses and tax experts. It was accepted that the Revenue needed to raise their game when dealing with tax matters. It also became clear that the Forum would be a positive step in ensuring the improvement of IR35 implementation.
The MD of the PCG, John Brazier, said it is vital that freelancers have proper representation in this matter. The Forum will represent a positive force in the fight for change and we have already put forward some ideas on how it should operate to revamp IR35.
The overwhelming consensus at the OTS conference was that better administration of tax collection was essential. The PCG feels obligated to doing everything it can to deliver change for the freelancers and limited company contractors it represents, he concluded.
George Osborne decided to retain IR35 in his March budget speech as he felt abolishing the legislation would lead to a serious loss of revenue.
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