Contractors concerned over investigations and unfair treatment from Inland Revenue

According to giantís Contractor Confidence Index (CCI),* based on figures for the first three quarters of 2003, 37% of contractors think they will be investigated for IR35 and 35% expect the treatment they will get from the Inland Revenue will be ëunfair.í

Comments Matthew Brown, managing director of giant group plc: These concerns come more than three years after the IR35 rules were first introduced. You would have thought that this would be enough time for the Revenue to establish better communication with contractors but this does not seem to be the case.

Contractors were asked by giant whether they thought the guidelines on IR35 provided by the Inland Revenue were helpful. More than half (55%) said no.

The Revenue could perhaps do more to communicate its message clearly to contractors. The IR35 self-assessment process is notoriously complicated so clear guidance is essential if freelancers are to feel confident that they will not be drawn into an expensive dispute with the Revenue, says Matthew Brown.

The survey also asked contractors if they thought IR35 insurance was useful to them. 52% of respondents answered yes.

Matthew Brown says; IR35 insurance can provide contractors with all the financial benefits of passing IR35 without any financial risk.

* The first part of the CCI research looking at sector growth, pay and contracts is also available.