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Paragraph 2.103 of today's Autumn Statement revealed that the government "has decided not to proceed with the proposal to tax those who meet the definition of a controlling person at source".
The surprise announcement is a result of HMRC’s new approach to policing IR35, along with the measures introduced in the public sector this year, which the government thinks are sufficient to prevent the loss through disguised employment.
The news will be welcome to many advisers, after complaints earlier this year that the knee-jerk response to bad publicity around senior civil servants being paid through personal services companies was a step too far that would further complicate the poorly drafted and ineffective IR35 tax measure.
But for those who still yearn for an end to IR35, the statement said the government will strengthen the existing legislation to "put beyond doubt that it applies to office holders for tax purposes".