Contractors win review of IR35 rule



Bill Goodwin

Contractors have won the right to a judicial review of the Government's controversial IR35 tax reforms, which, opponents...



Bill Goodwin

Contractors have won the right to a judicial review of the Government's controversial IR35 tax reforms, which, opponents claim, could damage the UK's progress on e-commerce.

Employers have described the reforms, which force freelance IT staff to pay higher taxes, as a "complete mess" and claim it could exacerbate IT staff shortages.

The Professional Contractors Group was granted permission for a judicial review on Tuesday, despite opposition from the Inland Revenue.

The group will argue that IR35 breaches EU competition laws and that it contravenes the European Con- vention on Human Rights.

Under its provisions, IT contractors are no longer able to offset more than a fraction of their training costs against tax, making it more difficult to keep their skills up to date.

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