Options On IR35
IR35 was more or less able to prevent “disguised employment” and prevent tax evasion. Yet we see that IR35 has not met the expectation of its framers. OnTax Accountants Dunfermline believes that the amount of revenue collected was high but nowhere near to what was estimated.
To take care of these issues there is a probable amendment in store for the IR35 bill. OnTax Accountants Dunfermline is of the view that re-considering IR35 is a necessary move since it has taken UK one step closer to eradicating tax evasion. The new and improved law is set to be harsher and more extensive, hence being more effective.
IR35 has Confused Even The Best Accountants...Surprised?
Know The IR35 Guidelines
The biggest question faced by the law is- Who does it apply to? The answer to that is a difficult one. All “office holders” are liable to pay tax as per the IR35. OnTax however thinks that different government agencies take different things into consideration. So there is a problem regarding the phrase “office holding”. The guidelines of IR35 hold the answer but they are not very clear to a layman. OnTax Accountants Dunfermline believes that so there are many cases where the applicability of IR35 has been challenged that it is worth getting your contact externally appraised. Irrespective of the problems present in IR35 we can observe that it has been a success when it comes to preventing tax evasion.
So the question relating to the 2013 budget is, "what is an office holder"? HMRC define it here. Interestingly that is a definition according to tax law but there is not a statutory definition of "office holder". So in the eyes of the law there is still no clear cut case, just lots of room for doubt and creative arguments! Some feel that Limited Company contracting is dead, others not. The interesting point is that these opinions change the closer you get to the contractors money ending up in the opinion holders pockets! Will this new bill work though? our opinion is that IR35 specialists will now look at ways to ensure the contractors are not "office holders" thus making this new legislation not as effective as it might have seemed at first.
Sharing Is Caring!
If you found this page useful, please care and do a share!