The latest meeting has taken place by the Treasury approved IR35 Forum. The group has been launched to look at ways of improving how IR35 can be administered by HMRC.
The latest proposal put forward to the Forum is the introduction of a ‘tiered test’ to recognise a contractor’s self-employed status. This could be implemented using a specific set of indicators that could influence when HM Revenue and Customs (HMRC) should intervene. This could then put an end the many ambiguous interpretations of the IR35 and allow contractors to gain clarity on their status.
Gillian Econopouly, the Recruitment and Employment Confederation’s head of policy and IR35 representative says the group will look to dispel any vague interpretations and minimise any grey areas by working on scenarios regarding different IR35 cases with the of establishing common ground on what is deemed as inside of the IR35 and what is clearly outside it.
"We continue to work closely with HMRC and other expert groups such as the PCG, FCSA and ICAEW to drive operational improvements and provide clarity for self-employed contractors and the agencies they work through. The aim is to find clearer ways to establish the status of contractors and to dissipate the mist of uncertainty that has surrounded the IR35 rules.”
She added “Whilst the discussions are taking time, we are working hard to establish common ground with HMRC and remain confident that we can help deliver genuine simplification for recruiters and the contractors they place.”
Hopefully, for contractors everywhere the Forum will make understanding the IR35 a lot easier and will allow them to keep outside of the regulation and avoid facing the consequences of HMRC.