Independent IR35 verification 'is necessary'

Posted on 8 September 2008

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UK contractors should get their IR35 status independently verified to ensure it is correct, Shout99.com has said.

According to website editor Susie Hughes, IR35 is "not a black and white law" where you can get a "clear cut answer".

"Part of this goes back to the genesis of IR35, back in 1999, where it was generally accepted to be a very unclear law by the professionals and advisors," she stated.

"There were, at the time, conflicting decisions, including by the [Inland] Revenue and by the [Special] Commissioners."

Ms Hughes emphasised her point, stating that it can sometimes be difficult to assess whether a contractor should be exempt from tax courtesy of self-employed status.

The HM Revenue & Customs Intermediaries legislation (IR35) was introduced on April 6th 2000, in an attempt to eliminate the avoidance of tax and National Insurance Contributions.

Workers could previously take money out of an intermediary, normally a Personal Service Company, in the form of dividends instead of a salary.

Category: Contractor News

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