A recently published House of Lords Select Committee report which raises questions regarding the effectiveness of current IR35 legislation has led to the PCG calling for the suspension of IR35 while proper consideration is given to its abolition.

Chris Bryce, CEO of PCG said:
‘The conclusion of the Committee is that abolition or suspension of the IR35 legislation, whilst attractive, would be unwise if HMRC can prove it provides Exchequer protection to the tune of £550 million.
‘The simple fact is, HMRC cannot do so. PCG has repeatedly asked HMRC to justify the £550m figure and the so-called ‘deterrent effect’ but HMRC has been unable or unwilling to do so. It is now clear from the findings of the House of Lords Select Committee that the effectiveness of this legislation and the justification for its continued existence is built on smoke and mirrors.
‘We are calling for IR35 to be suspended while proper consideration is given to its abolition. Removing this unnecessary legislation will allow the UK’s flexible workforce to do what they do best – boost British business. The Government has refused to listen to the cries for help from the hundreds of thousands of contractors, freelancers and independent professionals blighted by IR35, but they cannot ignore the findings of the Committee.’

The full news PCG news item can be read here

Clear Accounts offer an IR35 contract review as part of our Clear Advantage and Clear Premium packages.