Tax review could mean abolition of IR35

A wide-ranging review of smaller business taxation will have implications for the way that contractors are taxed.

The IR35 regime, introduced to prevent contractors reducing their tax liabilities, has come in for criticism over the time it has been operating.

Mark Prisk, the small business minister, has said: "We want to make sure that we could undertake a comprehensive review of small business taxation in a way that makes the need for the current IR35 legislation redundant.

"But we want to make sure whatever we change is a lasting settlement. One of the problems with IR35 is that it's a constantly changing set of rules."

The small business tax review is to be carried out during the summer.