A new policy paper printed by the Liberal Democrats has stated they don’t agree with their coalition partners over the administration of IR35 and wish to stop the regulation.

A review of IR35 by the Office of Tax Simplification in March offered three choices concerning the future of IR35 – hold then remove the tax, keep it in its present form or keep the tax in place while exploring the option of presenting an authentic business test.

The government declined the concept of presenting any kind of businesses test, as an alternative keeping the laws as it is whilst investigating into more effective methods for administrating the controversial tax.

The recently published paper by the Lib Dems says: “we advise the suspension of IR35 to be able to gather more data on permanent abolition”, in direct contrast with the option the government actually adopted.

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