Jane Stevens from Jenrick IT is always interested in any developments relating to IR35. She would like to share the following article she received yesterday from the PCG (the Professional Contractors Group who are a not-for-profit association that represents supports and promotes freelancers, consultants and contractors in the UK).

The judgment has been given today in the IR35 case of ECR Consulting - with another resounding victory for the taxpayer.  Elaine Richardson, a self-employed IT contractor working through her own limited company for Vertex Data Science was facing an IR35 bill in excess of £50,000.

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This article from Contractor Calculator is a must read for all IT Contractors.

Umbrella company contractors could be in line for further flak from the taxman if they find themselves in the ‘crossfire’ between their umbrellas and the taxman. Contractors are even being encouraged to ‘shop’ their umbrella companies over things like being too free and easy with their expenses dispensations.

HMRC has just released a briefing – Revenue & Customs Brief 50/09 – in which it unambiguously announces its intention to step up investigations of what it perceives as abuses of expenses and dispensation rules by umbrella companies. (more…)

The subject of IR35 was raised again in the Commons last month, with a Government Minister refusing to reveal how many IR35 investigations were launched over the past five years. (more…)

Figures have been released showing that the IR35 tax regulations are producing an average of just £1.5 million a year in tax revenues.

The disclosure came after the Professional Contractors Group (PCG) used the Freedom of Information rules to request exact sums on the amount of tax raised for the exchequer by IR35. [Source: PlanIT Chartered Accountants]

Between the tax years 2002/03 and 2007/08, IR35 managed £9.2 million in government income, the equivalent to £1.5 million annually. (more…)