New IR35 regime faces 12-month pilot

A new system for IR35’s administration will be piloted before it can be formally adopted, in the shape of an IR35 ‘interventions’ programme that will run until 2013, CUK has learnt.

HM Revenue & Customs is due to finalise the 12-month pilot on March 8th (2012), at what will be the last IR35 forum meeting before the Budget, so the IR35 probes can closely follow the system’s launch on April 6th.

At the forum, members will add details to the IR35 scenarios, which will eventually be provided to taxpayers to help them self-assess themselves as a high, medium or low risk under the rule.

Although finer details of HMRC’s new risk-profiling process on IR35 are under wraps, any surprise criteria is seen as “unlikely,” partly because the legislation hasn't been altered in any way since its introduction in 2000.

“Inevitably knowing where you are on the risk-profile will mean good news for some and not so good news for others,” added IR35 forum member Kate Cottrell, of IR35 specialists Bauer & Cottrell.

“But right now, it’s a case of ‘as you were.’ Contractors should continue to consider their IR35 status on a contract-by-contract basis as this is what is required by the unchanged legislation.”

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Written by Simon Moore

Simon writes impartial news and engaging features for the contractor industry, covering, IR35, the loan charge and general tax and legislation.
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