As many of you are no-doubt aware, today saw the release of the Office of Tax Simplification‘s Small Business Tax Review. We’ve been keeping a close eye on this, as it could very realistically affect all Crunch clients.
So far the reaction has been decidedly mixed. The OTS has essentially tabled three separate solutions – abolish IR35 completely, change the way it is enforced slightly, or keep it and make establishing your IR35 status much easier, giving freelancers and contractors a “safe-haven” from fear of an unwelcome IR35 investigation.
What was sorely missing was a sense of direction – although three different solutions are suggested, the OTS stops short of actually recommending one particular approach. What the UK’s self-employed workforce were looking for today was clarity – and they have received very little.
You can view the report in full here (PDF). We will be providing more coverage as our team have time to digest the report in full.