The IR35 Forum, in partnership with HMRC, has published the final report on a review of its new administrative approach to IR35, which began in April 2012. The report responds to the forum’s recommendations, identifying areas for improvement, mainly around improved guidance and customer awareness.
The IR35 Forum was established in 2011 following a review by the Office of Tax Simplification, which concluded that IR35 should either be suspended, with a view to abolishing the legislation, or retained but with much improved administration. In 2012, HMRC implemented a new approach to administering IR35 in partnership with the IR35 Forum. The terms for a review of this new approach were set out in August 2013 and the final report of the review published on 5 January 2015 looks at how effective the new approach has been and identifies areas for further improvement.
HMRC’s responses to the forum’s recommendations include commitments to:
continue updating the IR35 guidance pages on GOV.UK and update or create links to it from other pages;
make sure that withdrawal of the business entity tests from 6 April 2015 is widely publicised;
address confidentiality concerns about the contract review service by looking at providing guidance and support in line with other helplines and non-statutory clearances;
look for opportunities to raise awareness among specific industries where there has been a rapid growth in personal service companies, e.g. oil and gas;
provide clients with an agenda for meetings and amend its guidance to embed this as best practice;
provide an email address for clients to submit information and documentation to speed up the process; and
work to ensure consistency in informing the taxpayer/client as a matter of courtesy before approaching the end user
The IR35 Forum, in partnership with HMRC, has published the final report on a review of its new administrative approach to IR35, which began in April 2012. The report responds to the forum’s recommendations, identifying areas for improvement, mainly around improved guidance and customer awareness.
The IR35 Forum was established in 2011 following a review by the Office of Tax Simplification, which concluded that IR35 should either be suspended, with a view to abolishing the legislation, or retained but with much improved administration. In 2012, HMRC implemented a new approach to administering IR35 in partnership with the IR35 Forum. The terms for a review of this new approach were set out in August 2013 and the final report of the review published on 5 January 2015 looks at how effective the new approach has been and identifies areas for further improvement.
HMRC’s responses to the forum’s recommendations include commitments to:
continue updating the IR35 guidance pages on GOV.UK and update or create links to it from other pages;
make sure that withdrawal of the business entity tests from 6 April 2015 is widely publicised;
address confidentiality concerns about the contract review service by looking at providing guidance and support in line with other helplines and non-statutory clearances;
look for opportunities to raise awareness among specific industries where there has been a rapid growth in personal service companies, e.g. oil and gas;
provide clients with an agenda for meetings and amend its guidance to embed this as best practice;
provide an email address for clients to submit information and documentation to speed up the process; and
work to ensure consistency in informing the taxpayer/client as a matter of courtesy before approaching the end user
