UK contractors at risk of non-compliance 'over IR35'

Posted on 20 August 2008

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Most contractors could be risking the prospect of a hefty tax bill as they do not have their IR35 status professionally verified, it has been claimed.

A study by Brookson found that 63 per cent of UK contractors are at risk of operating in a non-compliant manner, with 50 per cent not seeking professional advice on their IR35 status.

The poll by Shout99 on behalf of Brookson found that only 27 per cent of contractors use a specialist accountancy or legal service provider to verify their IR35 status.

Martin Hesketh, managing director at Brookson, said: "Despite the huge legislative shifts the contracting industry has experienced in recent times, the IR35 legislation remains key for self employed contractors in determining employment status."

The Managed Service Company Legislation - more commonly known as MSC - was introduced in April 2007 and affects all IR35 applications and assessments.

Category: Tax & Legislation News

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