11 March 2011
Government urged to consider scrapping IR35 legislation
New employment legislation with regard to the small business taxation system could result in fewer grievances occurring against the government, an expert has suggested.
Gerry McLaughlin of online resource IT Contractor feels that the proposed abolition of the controversial IR35 rule would lead to the UK's employment sector becoming a happier and more satisfied place, particularly for temporary workers.
These comments came after the recent (March 10th 2011) publication of the Small Business Tax Review by the Office of Tax Simplification (OTS), which stated that the government should consider integrating income tax and national insurance contributions.
The OTS added that this would remove the need for IR35 and Mr McLaughlin noted that this would be a positive step, as the "hazy" legislation has served only to "spawn a whole load of court cases".
"What contractors really want is some kind of certainty so that they know far more easily what their position is as regards their tax status and liability," he went on to say.
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Posted by Cheryl Bennett