Tax avoidance
Should agencies and legal consultancies register their IR35 contracts under the tax avoidance registration schemes?
Many legal consultancies write IR35 "friendly" contracts and sell them to agencies who use them as their standard contracts. All parties are aware that in many cases the agencies deliberately mis-interpret the contracts and claim the client does not control the contractor. Contractors then submit these "fraudulent" contracts to the IR and claim they are operating outside IR35. Clearly, these are used as a means of defrauding the Inland Revenue of tax and NI. i.e. they are a tax avoidance scheme. Should suppliers of these contracts and agencies who use them register such schemes? -- Mark Brown
END OF ARTICLE ▪ FILED FROM LONDON