A London accountant has disputed recent claims that IFAs could fall foul
of the Inland Revenue's IR35 legislation.
Friedmans Chartered Accountants partner Jonathan Friedman says the chance
of most IFAs being hit by the new rule is unlikely because it is aimed at
individuals or limited partnerships who serve only one client, unlike the
type of businesses IFAs operate.
But consultancy firm TAff Associates director Terry Foul-kes, who made the
original claim, says it depends on the status of the registered individual
in an IFA firm and the relationship between the appointed representative
and the network.
Friedman points out the relationship existing between IFAs and their
networks does not involve IR35 because there is a difference between a
network handling certain functions like compliance compared to that of
operating as an employer of the adviser.
He says: “IR35 does not affect financial services firms any differently
than any other area of industry. The reality is that most IFAs will never
be affected by IR35.”
Foulkes says: “I cannot think it would be possible for an accountant to
say that an IFA would not be hit by IR35. A number of IFAs could face
problems but equally a number might not.”