HMRC has missed a great opportunity to end 12 years of confusion, disarray and worry over IR35 with their business entity test guidance published today (9th May)

That’s the robust view of PCG and four other external bodies who worked with HMRC on the IR35 Forum.

PCG would like to correct a number of factual inaccuracies in the Shout99 article “Value of IR35 tests ‘extremely limited’” and the ContractorUK article “Where are we now? An IR35 expert’s view” in which Kate Cottrell offers her perspectives on HMRC’s latest guidance. We are the only not-for-profit representative association for freelancers and we are committed to securing a better, fairer environment for the UK’s 1.6 million freelancers.

Broadside from bodies they asked to advise them

HMRC has missed a great opportunity to bring clarity, transparency and fairness in dealing with IR35.  That is the forceful view of members who were invited on to the Treasury forum to discuss the issue.

The IR35 Forum was set up in 2011 to explore new approaches to the way IR35 is administered and monitor progress. It consists of representatives from HMRC, industry organisations and independent tax experts.

But as the report is published APSCo, FCSA, FSB, PCG and REC, bodies representing small businesses, the recruitment sector, freelance services sector and freelancers claim the new IR35 Guidance published today fails to take into account key elements of their advice.