A leading tax expert told peers reviewing the controversial IR35 legislation that its original design, based on contract by contract policing, was “innately clumsy”. Andrew Goodall reports on Monday's hearing.
John Whiting, director of the Office of Tax Simplification (OTS) and a non-executive director at HMRC, was giving evidence to the House of Lords personal service companies committee investigating “the consequences of the use of personal service companies (PSCs) for tax collection”.
In the inquiry’s first public hearing on Monday, the committee also questioned Rowena Fletcher, HMRC’s deputy director with overall responsibility for employment status matters, and Robin Wythes, employment status team leader at HMRC.
The committee is led by Baroness Noakes, a former president of the ICAEW. “We need to ensure that our tax system does not place unreasonable burdens on taxpayers,” she said earlier this month.
HMRC estimates the current PSC population at around...