After the Office of Tax Simplification review, the Government has decided that it will retain IR35, the income tax and national insurance rules for individuals who provide services via an intermediary company. However, to achieve simplification, improvements will be made to its administration. The improvements include:
- Creation of a dedicated helpline to provide greater pre-transaction certainty;
- Publication of guidance on those types of cases HMRC view as outside the scope of IR35;
- Restriction of reviews to high risk cases carried out only by specialist teams; and
- Creation of an IR35 Forum to monitor HMRC's new approach.
Who will be affected?
Individuals who provide their services to clients via an intermediary company.
At the moment no timescale has been published.
Whilst some will be disappointed that these rules remain in place, improved guidance is welcome.