No Legislative Changes to IR35 in 2016

Great news was received from the IR35 Forum meeting held on 15th December 2015 when HMRC confirmed that no legislative changes would be made to IR35 in 2016, according to IPSE.

After a lot of concern and uncertainty since June, when a number of potentially devastating proposals were made in the Summer Budget 2015, contractors can now breathe a sigh of relief.

This does not include the amendments to travel & subsistence claims which will effect PSCs only where IR35 applies. This is expected to be legislated in the 2016 Finance Bill on 3rd February.

Although 2016 will continue for contractors as normal, with the exception of the travel & subsistence expense restrictions, it is expected that further consultation will continue throughout 2016 whilst the OTS (Office of Tax Simplification) investigates proposals to improve the legislation.

In the December IR35 Forum, HMRC also confirmed plans to improve the online Employment Status Indicator tool (ESI) to make it more relevant to contractors, providing a tool in which contractors can assess their own status. Fingers crossed this will be an overwhelming improvement to the Business Entity Tests which were abolished last April.

 If you require further information or advice, please call us on 0116 2690992.

By:Gemma Cakebread

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