Controversial legislation IR35 will be reviewed, according to today’s Emergency Budget.

The legislation, which aims to combat so-called “disguised employment” by individuals seting up their own companies in order to avoid tax, has long been a bone of contention among contractors in sectors such as IT, who contend that it forces them to costly and unnecessary investigations by Her Majesty’s Revenue & Customs.

Martin Hesketh, managing director of umbrella services company Brookson, welcomed the news. He said: “Whoever thought the legislation up showed that they did not understand the market they were supposed to regulate, so it’s good to know that it will be reviewed as part of the tax simplification process.”

No timescale has been set for when the review will take place.