IR35 - does it need binning?

Perhaps the number of ex Ministers on the boards of the big consultancies plays a part, and the desire of HMRC to push as many people in permanent employment as possible

It's always been HMRC pushing the government into more IR35 legislation, no matter whether it's been Labour or the Tories in power
The bizarre thing is - Contractors to HMRC are deemed to be working OUTSIDE of IR35, after most of them left when they were brought inside IR35:


Duplicity indeed.
 
One minute something is legal in tax law, then suddenly in the past it is declared illegal, it sets rather a dangerous precedent
I believe the issue is in part that lower courts kept saying it was legal but finally the Supreme Court came to a different verdict for different reasons. Retrospective legislation is much abused as a concept but has a long history. I've read that the Welsh Bastard retrospectively legislated that he was King of England the day before Bosworth so if you fought against him at battle you were a traitor, which rather puts a bit or tax collection into perspective.
 
Well said that man.
I stand by my original comment that contracting is a lifestyle choice. You choose to forego the benefits of employment for flexibility and for financial reasons. Equally, choosing employment, entrepreneurship, retirement or the dole are lifestyle choices.

My original response to the OP was regarding his assertion that contracting is somehow entrepreneurial. It isn’t. A contractor working an hourly rate is not taking any entrepreneurial risk. In fact, they are doing little different Roman employee; selling their personal time and expertise for compensation.

A contractor who agrees to deliver a defined service or product for a fixed price is taking entrepreneurial risk. They are producing a product for which they are funding the inputs and making a profit on the output.

Ultimately that is what IR35 was about; stopping those who take no entrepreneurial risk from claiming tax benefits that are designed for those that do. And no, the risk of not getting paid because your client goes broke is not an entrepreneurial risk; it’s a risk shared with employees who are in the same situation.

It’s not as if this is anything new. IR35 is nearly 20 years old and the tests are chrystal clear. Other industries (eg construction) cleaned their act up years ago.

Zero sympathy from me for businesses and individuals who have evaded tax by disgusting employment as contracting.
 

Top