The OTS provided its interim report today (10 March 2011) and offers two main options ‘Reform’ or ‘Abolish’:
1. Suspend IR35 moving to complete abolition
2. Keep IR35 legislation unchanged, but improve the way it is policed
A third option is also suggested and includes the suggestion to introduce new business tests.
The final report is hopefully due towards the end of the year with implementation depending upon which option they choose, the more radical and complex the solution the greater time will be needed to implement. There is a suggestion of combining income tax and national insurance which would definitely be one of the more complex proposals with a far greater implementation time.
This interim report still means in reality there is no announcement, but does however demonstrate that the Government is still driven to make changes.