 |
|
| CURRENT SECTION :: IR35 / IR591 | UK's most visited IT Contractor Site - 250k unique visitors March 2008 |
|
 |
A recent discussion paper once again questions just how effective IR35 is in its objective of preventing disguised employment and, of course, raising revenue. The criticisms arise in a recent Tax Faculty paper on small business issues, which includes input from Chartered Institute of Taxation. IR35 first came into effect in April 2000. At that time the Government placed a figure on the amount it believed was at risk if the new measures were not put in place: £900m. Dawn Primarolo famously came under fire earlier this year when asked how much additional revenue IR35 had secured, she replied “It is not possible with any accuracy to isolate data relating solely to this legislation.”. The paper goes on to confirm that there are still no figures currently available on how much revenue the Government has pocketed since IR35’s introduction - four years ago. Not surprisingly, the document states that not only is this entirely unsatisfactory, it also leads to suspicion that the revenue raised has fallen far short of its intended target. The paper calls for discussion to clarify the headaches (and related costs) of red tape for owner managed businesses and ultimately for IR35 to be replaced with a much clearer system for determining employment status. The paper concludes: “It is time to take a radical approach to the issue of employment status. The current system is not working and a new route should be sought. The leader in any change should be improved certainty for businesses and taxpayers” S660 also comes under attack with The Tax Faculty calling for a ‘pragmatic view in applying the settlements legislation.’ Sep 1, 2004 Email this article Printer friendly page Previous Page
|
|
  |
||||||||||||||||||||||||
| All content © Contractor UK Limited | [Register for News Letter] | [Privacy Statement] | [Terms of Use] | [Top of Page] |