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Treasury confirms not all contractors need fear IR35

It’s a red-letter day for many contractors after the Treasury finally confirmed that many of them have quite literally nothing to fear from IR35 tests.

A large number of freelancers and contract workers have finally heaved a massive sigh of relief as news broke that it will not be compulsory for any public sector department to ask their contractors to provide proof that they fall outside the IR35 test for disguised employment. In fact, hiring managers will most likely simply be expected to choose only a select few contractors in order to test the waters, which will save both time and money for government employers and sanity on the part of nervous contractors.

Treasury representative, Natalie Toms, met with the Association of Professional Staffing Companies earlier his month in order to provide clearer understanding on how the push to increase enforcement of IR35 in the public sector will affect the average government contract worker. APSCo commented on that meeting, remarking that while there have been large inconsistencies when it comes to information regarding these enforcement guidelines, based on the experiences of members, meeting with both Ms Toms and HMRC representative, Sarah Radford, managed to clear up several issues.

The industry body remarked that the Treasury guidelines had been put into place to bring and end to instances of disguised employment, rather than to combat tax avoidance, despite the impression that may have been given off by the comments of Government ministers over the past few weeks.

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