Jonathan Djangoly, Shadow Minister for Corporate Governance and Solicitor General has given an interview in which he discusses important contractor issues such as IR35, income shifting and the Agency Workers Directive.

Djangoly, who is also MP for Huntingdon, said, “The regulatory atmosphere for business has become totally over the top and it’s not just over-regulation but the very process by which government consults with business.”

Djangoly stated that the IR35 is on the Conservative Party agenda and would be looked at closely by a Conservative government. He commented, “We have to ask whether we should simply scrap IR35 and return to pre-2000 conditions, or whether we should amend the legislation. We are aware that there will be unintended consequences if IR35 is simply scrapped, with nothing to replace it.”

Djangoly confirmed that he is in contact with the stakeholders of the Agency Workers Directive. With regards to this hot topic, he had this to say: “We have accepted that the deal is done and the Agency Workers Directive will be put into law. The reality is that different organisations have very different views on its implementation. However, the one thing that very nearly everyone agrees with is that we should be calling for a delay in its implementation. This is for two reasons. Firstly, with the current economic climate, it is the wrong time to introduce further regulation that increases costs for business.”

On the issue of income shifting policies, Djangoly said that the current Labour government has yet to indicate whether or not they will be introducing income shifting legislation into this session of parliament. The conservatives stance is that “these would constitute yet another tax increase and place an increasing regulatory burden on small businesses.”

He continued, “And secondly we should wait to see how other countries implement the directive first. The UK will be the country most affected by the directive, so why should we be the first to implement the legislation?”

Djangoly has provided an insight into how the current regulations and policies may develop if we has a Conservative government but only time will tell if the Conservative Party will win the next General Election and, if so, how his comments will be put into practice.

Source: Contractor Calculator

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