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Conservatives pledge to review IR35

Mark Prisk, Shadow Minister for Business, has pledged that if the Conservatives win the forth coming election, a Conservative Government would undertake a fundamental review of IR35.

IR35 was introduced in 1999 and has caused confusion and uncertainty for Contractors ever since, with the possibility of HMRC investigations, potential repayment of Income Tax and NI, and even fines for those that fall foul of the confusing regulations.

In a letter to PCG, a group which campaigns for the rights of Freelancers in the UK, Mr Prisk said, "if elected, a Conservative Government would undertake a fundamental review of small business taxation matters, including IR35.  We would do this by mandating the independent Office of Tax Simplification to conduct this review, working closely with tax experts and those affected. 

In this way we believe we would be able to replace a complex, uncertain and unfair tax regime with one which is clearer, stable and which would give people the confidence to start up and build their business."

The Recruitment and Employment Confederation has welcomed this statement, although they comment on their website that "We note that the Conservatives have previously said that if they were to repeal IR35 they would replace it with something similar.  If they do become the next government, we will work with them to ensure that any future legislation in this area is fair and equitable."

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