Despite promising to simplify taxation in its pre-election campaigning, the coalition has led to more complication not less according to the Association of Chartered Certified Accountants (ACCA).
In its report, the ACCA have stated that the new Onshore Intermediaries Rules have imposed additional burdens on the area. These rules have received quite a lot of negative feedback from other sources also for being too complex with some aspects not clearly defined.
Despite setting up the Office of Tax Simplification (OTS), it is claimed that the government has not given them enough support and has proceeded to implement changes whilst the OTS are still in the middle of reviewing existing systems.
The ACCA have however pointed out that a positive for contractor taxation is the review of the non-statutory IR35 reforms. The IR35 is another area affecting contractors which has come under criticism for being overly complex and now even the House of Lords have been quoted as speaking out against it calling for a removing of unnecessary legislation to allow Britain’s flexible workforce to boost business.