John Whiting, the new tax director of the Office of Tax Simplification recently commented that new measures for replacing the IR35 legislation will be very difficult to draw up and will not be put forward until next year’s budget at the earliest.
He noted that any measures brought in to replace IR35 would in all likelihood need to consider a contractor’s income sources in a similar fashion to Australia’s 80/20 rule: “ We may have to go for more of the 80/20 approach but let’s see where we get to. What I want … is a thorough review – not just another sticking plaster.”
He also pointed out that the OTS would need to look at why IR35 was introduced in the first place and whether the issue it was brought in to address was still there.
