IR35 and The Office of Tax Simplification (OTS)
At the weekend I received my copy of the PCG’s quaterly magazine, Freelancing Matters. Flicking through the pages, it is very easy to see that a large industry has grown up around IR35 and the uncertainty it brings for IT contractors - contract reviews, tax insurance - it’s all there.
I pay around £500 per year between tax investigation insurance and my PCG membership. This is money I didn’t have to spend pre-IR35, and which I wouldn’t have to pay if IR35 was scrapped. If I’m a typical contractor, ie there are loads of other contractors out there paying a similar amount, it’s not difficult to see that IR35 is not bad news for everyone.
If the people making a living out of IR35 are also the same people with whom the OTS is consulting over the future of IR35, it seems pretty obvious to me that the ’son of IR35′ will still somehow ensure that contractors need tax insurance and contract reviews.
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