New IR35 forum
An IR35 Forum has been established following the Government’s announcement at Budget 2011 of plans to retain IR35 whilst at the same time making clear improvements in the way it is administered.
The ‘IR35’ rules are intended to prevent the avoidance of tax and national insurance contributions through the use of personal service companies and partnerships.
The forum has been established with the following terms of reference:
- Identifying specific areas for improvement in the administration of IR35.
- Developing an overarching strategy for dealing with the administration of IR35.
- Designing specific approaches and steps within the overarching strategy.
- Identifying and agreeing measures of success against which to judge improvements.
- Monitoring the implementation of the new strategy and progress against agreed measures of success.
- Reporting on progress in implementing improvements to the administration of IR35.
The members of the forum include representatives from tax and accountancy bodies, employment associations, the federation of small business and HMRC.
The IR35 shorthand reference to these rules dates back to when they were first introduced by the 35th IR press release of the Chancellor’s Budget in 2000.