HMRC meets representatives about public sector IR35 rules and tools

HM Revenue and Customs has met a number of large agencies, public sector representatives and freelancer groups to discuss the proposed new public sector IR35 rules and to comment on the latest version of HMRC's planned new online tool.

The controversial rules intend to place the responsibility for a contractor's IR35 status on the client, agent or end-user.

The Association of Recruitment Consultancies (ARC) was one of the groups which attended the meeting. Its Chairman, Adrian Marlowe said: "The meeting provided a useful opportunity to question HMRC on some of the anomalies that are apparent in the proposals.

"For example, the rules on liability need clarification to make them fairer. However HMRC's approach was receptive and, while the tool is not yet in final form, we anticipate further improvements and we will continue to work with HMRC.

"ARC will be responding to the current consultation on the draft legislation shortly. In the meantime, our view is that the problem is that the test of employment status under IR35 is too complex to provide certainty, which is what is needed. This itself leads to tax avoidance. Instead of hanging on to old, 'tried and failed' legislation, the core legislation itself should be simplified, removing ambiguity and potential for conflict."