Gov.uk still struggling with IT contractor tax rules

UK government departments are still struggling to implement the tax laws governing IT contractors years after the controversial rules were introduced. IR35 has become hated by freelance tech workers who feel it removes the tax benefits of contracting, without offering the employee benefits of in-house roles in its stead. The latest accounts from the Foreign, Commonwealth and Development Office (FCDO) show that the UK tax collector is reviewing its implementation of IR35 for a second year after the department decided to place hundreds of workers inside the reach of the rules. In its 2024 -25 annual report, the FCDO said a total of 243 were found to be in scope of IR35 following “a full review of all IR35 off-payroll status...

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