This Content Was Last Updated on February 9, 2017 by Jessica Garbett
The government has no plans to abolish IR35. Instead, you have an opportunity to comment on how to reform the legislation.
Intermediaries Legislation (IR35): discussion document highlights that the abolition of IR35 is not considered to be an option for the government but that the legislation needs to be straight-forward and easier to understand and apply.
The door seems to be open for a fundamental reform and comments are invited to be received by the end of September. The key points for discussion are:
Views on the current IR35 system; specifically:
- any evidence on the use of other types of intermediaries, aside from PSCs, to which IR35 may apply
- any evidence on how PSCs currently operate IR35 and the issues the rules create for individuals and businesses across the market.
Views on options for reform; specifically:
- any proposals for how to improve the effectiveness of IR35 that meet the objectives outlined in this document
- any views on the implications of a change in the test which determines whether IR35 applies, both positive and negative, and what stakeholders’ preferred approach would be
- any views on the potential option outlined in this document which would result in the engager taking on a greater role in being responsible for operating IR35, including:
- whether such an approach would be effective in achieving the objectives outlined in this document
- how it could be made as straightforward as possible for engagers to determine whether IR35 should apply as part of their routine hiring conversations
- whether there are particular sectors or types of engagers which would face particular challenges
- how such an approach should work where a PSC is engaged by an individual rather than another business, and if there should be different rules which apply in these circumstances
- any other views on the impacts of such a change and how they might be addressed to minimise any additional burden on engagers.
Article contributed from ACCA InPractice