The Office of tax Simplification (OTS) has been set up to review tax systems and tax reliefs. It aims to put forward proposals to the government by the Budget next year for simplifying or replacing IR35 and other complicated and contentious tax rules. This has been supported by the REC who have written to the OTS to support plans to replace IR35 as this has been an area of particular interest for such REC groups as the Technology Sector Group and the Interim Management Association (IMA).
Chair of the Technology Group, Jeff Brooks, stated: “Over the coming year, the work of the OTS will have huge implications for the contractor market place. Specialised Recruiters in the IT and technology sector are in daily contact with contractors and have regularly flagged up the challenges that current taxation requirements create. We will be working constructively with Government and with the OTS to feed into the forthcoming reviews and to help streamline the current tax regime for those operating in our market.”
Meanwhile, IMA chair Paul Botting commented: “A review of IR35 is long overdue and will help to simplify flexible working options such as interim management. Interim executives and managers are key drivers for both growth and efficiencies and should not be stifled by an overly complex tax system. The voices senior interim managers and their providers must be at the forefront of the debate over the coming year.”