Jenrick IT has learned that the government has confirmed that it will conduct a complete review of how small businesses and entrepreneurial businesses are taxed.

A wide-ranging review of smaller business taxation will have implications for the way that contractors are taxed.

The IR35 regime, introduced to prevent contractors reducing their tax liabilities, has come in for criticism over the time it has been operating.

Mark Prisk, the small business minister, has said:

“We want to make sure that we could undertake a comprehensive review of small business taxation in a way that makes the need for the current IR35 legislation redundant. But we want to make sure whatever we change is a lasting settlement. One of the problems with IR35 is that it’s a constantly changing set of rules.”

Philip Fanthom (Managing Director, Jenrick IT - Specialist IT Contract & Permanent Recruiter) commented:

“We welcome this review and are more than happy to continue contributing to the debate, as we have done for a number of years. In fact, last year were one of a select group of agencies who attended the House of Commons to discuss this issue. There has to be a more efficient, user friendly and fair taxation system that works for all parties concerned. At least this government appears to be willing to listen to those who are affected.”

The small business tax review is to be carried out during the summer.

Tags: AWD & IR35, ir35 compliance, ir35 news, ir35 tax rules

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