REC joins Governments IR35 Forum

The Chair of the REC Technology Sector Group, Jeff Brooks, said that \”Taking part in this forum will allow the REC to push for real, substantive change in how IR35 works. We have to find a way to focus the system on the rare cases of actual disguised employment, and make sure that the vast majority of contractors who have done nothing wrong don’t have to worry about being subjected to a HMRC investigation or tribunal that could last years.”

\”It has always been the complexity of the rules, and the uncertainty they create, that has made the system unacceptable for contractors and the recruiters that find them work. This has also wasted countless hours of tax officials’ time, and it is in the interests of all sides to find a quicker, more efficient way to crack down on the few real instances of false self-employment.\”

The Managing Director of the Professional Contractors Group (PCG), John Brazier, said earlier in the month that \”It is vital that freelancers are properly represented at this juncture. We have been assured that far from being a \’talking shop\’ the new Forum will be a positive force for change. PCG has already put forward initial thoughts on how the Forum should work to revamp IR35. We will continue to develop these ideas in conjunction with our membership.\”

As well as setting up the IR35 Forum the Government has opened a dedicated telephone helpline staffed by IR35 tax specialists and has also said that it will publish new guidance on the types of cases the HM Revenue & Customs (HMRC) considers to be outside the scope of IR35. It now looks as though IR35 will largely remain in place until such time as it is abolished following the possible merging of the Income Tax and National Insurance systems, although that could be some way off.

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