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ACCA head of public sector, Manj Kalar, notes today IR35 – intermediaries legislation – remains in the Finance Bill:
‘We are concerned IR35 rules have not been reviewed in detail ahead of the General Election.
‘The implementation of IR35 rules on the taxation of contractors puts additional pressure on the public sector when the government most needs this additional resource to deal with major changes to existing processes, including implementation of digital systems, as well as Brexit.
‘Our understanding is that Treasury officials have reported no negative effects, but the Customs Declaration System (CDS) has seen its Red Amber Green (RAG) rating revised from green to amber/red in recent months - a shift attributed in part to IR35 by the contracting community.