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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IR35 is to be retained with the government committing to improving the way it is administered, according to Budget documents.

The documents say that following the publication of the OTS review of small business tax, the government will commit to setting up a dedicated helpline staffed by specialists.

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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. (more…)

Contractors supplying services to public authorities will not face requests under the Freedom of Information Act, in line with demands from the business community.

Heading off the prospect of extra costs for large and small government suppliers alike, policy makers said contractors would remain outside the scope of the 2005 legislation. (more…)

A landmark ruling in which a sub-contractor was deemed to be an employee could affect the employment status and legal rights of thousands of other so-called sub-contractors working in the UK.

The ruling has implications for hundreds of workers in the transport industry generally, as well as workers in a number of other sectors where contract labour is traditionally used such as large-scale construction projects like the Olympic site in east London, together with the NHS, education, IT and banking sectors. (more…)

The government’s decision to retrospectively close a loophole in the UK Isle of Man double taxation treaty is threatening the livelihoods of more than 2,000 freelancers.

The impact of backdated legislation in the Finance Bill 2008, to deal with affected schemes, has been so “severe” that all other retrospective provisions should be diverted. (more…)

A laid-off techie was right to say employment rights entitled him to claim unfair dismissal, despite being engaged as an independent contractor on a project with just a week’s notice.

The ruling, obtained by CUK from the case lawyers, is being seen as a landmark decision, for potentially allowing contractors inside IR35 to claim employment rights from their end- users. (more…)

Some contractors within IR35 might be able to claim employment rights from their ‘client’, following a landmark ruling this week.

An Employment Tribunal has found that contractor Andrew Tilson was an employee of Alstom Transport, despite billing on an hourly basis through his own contractor limited company and working through an agency. (more…)

David Cameron, the Conservative leader, has called the government to broaden its base of IT contractors away from large technology companies like Capita.

Rather than simply being reserved for the “the big players”, the Tory leader said contracts for the supply of services to the government should go to smaller outfits.
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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…)