Why does IR35 need to be strengthened


IR35 Need to be Strengthened

Does IR35 need to be strengthened?

The Government has stated that it is going to strengthen IR35 and appoint extra compliance officers.

They used the recent publicity over some of their own departmental manager using Limited Companies to pay themselves, including those in HMRC.

However, IR35 doesn’t need to be strengthened to catch these guys.

They were the obvious disguised employees that IR35 was set up to catch.

All the existing compliance officers needed to do was to take a day off from hunting contractors and walk upstairs.

Dawn Primarolo

Dawn Primarolo, who was responsible for IR35 told the PCG that far more contractors had been caught in the net than had been intended.

So, surely it should be weakened and not strengthened.

Or is it the money that the government takes in through 200,000 Umbrella Company contractors paying on average 10 grand more in tax and NICs that the Government wants.

Do they want more of this and are prepared to scare more contractors out of limited companies and into umbrella companies?

This was not what they led the PCG to believe they would do before the last election when the PCG rushed out a Press Release saying the Conservatives had promised to ‘look at’ IR35 again.

They’ve had a good look at it now and very much like the look of it so much that they will strengthen it.

Maybe the PCG should have been a bit more streetwise.

Does IR35 need to be strengthened?

Hundreds of thousands of IT contractors in the UK would say definitely not.