It’s good news for UK contractors after the coalition government’s launch of the new Office of Tax Simplification. The body will be tasked with making the tax system in the UK less complex, which will include a review of IR35.
The OTS is formed of independent tax experts who will make recommendations to the government on how to simplify the ‘labyrinthine’ 11,000-page tax system. They have been tasked with delivering two reviews before next year’s Budget – one will focus on small business taxation and the second will review the system of tax reliefs.
The announcement, as made by the Exchequer Minister David Gauke, has already received a positive response from PCG – the trade body for freelancers and contractors.
“We are delighted that the Government has now set up this vital office and that they have already set out the terms of reference for a Small Business Tax Simplification Review, including IR35,” said John Brazier, PCG’s Managing Director. “The fact that IR35 has been highlighted as a priority is good news. We will be working to ensure that this iniquitous tax will go and that all freelancers and small businesses will be able to operate within a fairer and more transparent tax system.”
The wider business community has also given the announcement a warm reception. However, this is set to be a long process, and as one commentator put it: ‘The new Office for Tax Simplification has a complicated brief.’ Nonetheless, for freelancers and contractors it can only be a step in the right direction.
