ACCA calls for end to IR35

The Association of Chartered Certified Accountants (ACCA) has become the latest in an ever growing line of experts who have lambasted the Government over IR35 and called for it to be scrapped.

As the Finance Bill continues its Parliamentary passage, many organisations from business, representative bodies, practitioners and trade associations have sent an 11th hour warning to the Government that it won't work. Yet the Government has showed no signs of listening.

Chas Roy-Chowdhury, Head of Taxation at ACCA, said: "The whole point with IR35 is that it is based on a lack of understanding of how small businesses work. They do not work like this for an NIC wheeze. There is a lot of risk involved for the self employed - if there is no business, you go out of business. If these people take the risks they are entitled to the rewards.

"The Finance Bill is still in Parliament and this is the last chance to do something about this. It's not about the detail within the legislation - the whole thing should be scrapped."

ACCA's statement follows recent condemnation of IR35 by the respected Tax Faculty of the Institute of Chartered Accountants; the CSSA; the Federation of Small Businesses; the Professional Contractors Group; other organisations and tens of thousands of small businesses, many of whom are making plans to take their 'in-demand' skills abroad.

A spokesman for the Professional Contractors Group which represents the interests of the independent contractor, said: "It's hard to know if it is arrogance or ignorance which makes this Government think it's right when so many experts are telling them they've got it wrong.

"Surely we've reached a point now where there are enough nails in the IR35 coffin to ensure the lid stays shut."

Mr Roy-Chowdhury concluded: "Not only is this measure unfair, it also discriminates against wealth-creators who are adding value to the economy. The Government is seriously mistaken on the issue and should reverse its decision."