Exchequer secretary commits to improving IR35

Exchequer secretary David Gauke MP has committed to improving IR35.

Exchequer secretary David Gauke MP has committed to improving IR35.

The minister, who is responsible for HMRC, told the PCG’s Freelancing Matters magazine: “I understand the professional contracting community has concerns about the ability and willingness of HMRC to make substantial improvements in the way it administers IR35, but I know that HMRC is committed to a complete overhaul of the way IR35 is administered to address these concerns.

“Put simply, I see this as an issue we have to get right if the tax system in this area is to be fair and if professional contractors are to be able to provide their services in the most appropriate way.”

Speaking after the first meeting of the new IR35 forum, which took place on the 6 May, PCG chairman, Chris Bryce, says: “We are pleased to have this personal commitment from the minister, recognising the major difficulties with IR35 that freelancers have faced over 11 years.

And referring to the forum, he added: “We have a chance to make a real difference to the uncertainty around IR35 and issues such as the unacceptable length of many IR35 investigations. We take this challenge very seriously and are determined to deliver clarity, transparency and consistency for our members and the freelance community. We are determined to clean up HMRC’s administration of IR35 once and for all.”

Gauke adds: “In this spirit, I am extremely pleased that PCG is willing to take part in the IR35 forum, which will benefit immensely from their considerable working knowledge of IR35. Members of the forum will be in a position to influence the development of a new strategy, monitor HMRC’s delivery and report back to HMRC through the forum contractors first-hand experiences of HMRC’s new administration.”

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