IR35 – Did the Chancellor miss a major opportunity.
Charles Russam, founder of WorkingFree, the consultancy supporting executives moving from employed to self employed status believes Hunt played it safe. Russam has already created a bolder more radical approach to managing issues surrounding IR35 and double taxation and feels the Government didn’t try hard enough to find the right solution.
“The bolder and more radical thinking by WorkingFree, creating a new type of limited company that includes forbidding payment of dividends and remuneration to family members not formally employed in the business and taxed, is a better option” said Russam. “It means the self employed worker’s new limited company pays all legitimate expenses, the engaging client none and HMRC treats the new limited company like any other limited company but actually collects tax due earlier.”
Russam believes the Chancellor has missed this important opportunity not following in WorkingFree’s footsteps. “Our solution to managing IR35 for our independent workers means the HMRC is happy and all parties are very clear on what part they play in following due process. Everyone knows where they stand.”
More people are choosing to work independently – particularly at senior levels – and they now think differently, behave differently and have different aspirations. Independent Working will soon represent half the working population (now about 33m.) says WorkingFree.
Whilst the HMG and HMRC changes to IR35 are positive, they don’t do enough for this growing working sector.
For more information, please contact Katie Atkinson, Fennemore Communications on 07783 480887 or katiejatkinson@aol.com
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