Budget 2012 report, Paragraph 2.207
Page 77 of the Budget 2012 report includes the following paragraph (2.207) on "Personal service companies and IR35"
The Government will introduce a package of measures to tackle avoidance through the use of personal service companies and to make the IR35 legislation easier to understand for those who are genuinely in business. This will include:
- strengthening up specialist compliance teams to tackle avoidance of employment income;
- simplifying the way IR35 is administered; and
- subject to consultation, requiring office holders/controlling persons who are integral to the running of an organisation to have PAYE and NICs deducted at source by the organisation by which they are engaged. (Finance Bill 2013).
This looks like the kind of nebulous statement civil servants still like to chuck into the pot to show that they've been doing some work. But what on? Where's the detail?
Around all the other Budget-related hares I've been chasing, I've been asking those in the know if they know anything, but have heard hardly a peep back. I will continue my researches and report back here, but this seemed an appropriate subject with which to kick off this IR35 discussion group. If you pick up any further information, please share it with the group here, as I will be doing. Before the full debate really kicks off, it would help to know exactly what we'll be dealing with.
People who may know are the members of the IR35 Forum, set up to review proposals following the government's decision last year. AccountingWEB member davechaplin mentioned that at a meeting last month they were shown the planned measures for tougher, targeted enforcement that the Chancellor mentioned in his speech. I'll ask him if he can enlighten us any further.