Feeds

IR35 threatens to blow up into election issue

Tories say they'll abolish it; Labour says all's well

  • alert
  • submit to reddit

Internet Security Threat Report 2014

The IR35 legislation that increases the tax paid by IT consultants may become an election issue thanks to its inclusion in the Conservative Party's manifesto.

The manifesto reads: "Conservatives will repeal the tax on IT consultants, the notorious IR35, which has driven away from Britain some of our most productive workers. We will replace it with targeted anti-avoidance measures."

E-minister Patricia Hewitt has already responded to the manifesto claim that people are leaving the country by saying the opposite. "I think a lot of people who thought that IR35 would hit them are pleasantly surprised to find that they really are self-employed - in the eyes of officials as well as themselves," she wrote in a chatroom. "Last year, everyone was saying IR35 would cause thousands of IT professionals to flee the country. It just hasn't happened - perhaps because Germany, Australia, the US and many other countries are also taking the same step to have fairness in the tax system."

What Patricia fails to mention of course is the High Court ruling that the government had failed to enforce the legislation properly and its implementation needs to be revisited. The issue is far from over and while the government is attempting to come up with a new method of applying it, the Tories will use the issue to inflict maximum political damage.

Ms Hewitt's claims that no one is leaving the country are also suspect. But we are unlikely to have any useful statistics before the election is over. We would also welcome a further explanation as to what she means exactly in reference to other countries producing legislation.

Apart from IR35, however, there is not a single mention of the IT industry or the Internet in the Tories' manifesto - something that may even be newsworthy in itself. We look forward to reviewing the LibDems manifesto tomorrow and Labour's much-awaited manifesto some time this week. ®

Related Stories

Portillo pledges Tories will repeal IR35
Judge slams Govt IR35 test
IR35: the govt's viewpoint
IR35 judicial review over

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.