IR35 under attack

The basis of the judicial review is reported to be that the legislation represents an illegal provision of state aid to larger companies who are unaffected by it and that it is in breach of the European Convention of Human Rights because it will result in the confiscation of property. Hopefully this second point will embrace the issue of double taxation which has been highlighted in the columns of Taxation; drawing the deemed remuneration from a personal service company in the form of a salary attracts no relief from double liability under the provisions of paragraph 13 of the Schedule which the Revenue does not want to extend on the basis that the need for simplicity overrides the search for fairness.
Arguments will also be raised that the legislation is anti-competitive as it stops small businesses from claiming tax exemptions for training equipment or employing staff.
The...