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Accountant claims IR35 tax edict will not hit IFAs

A London accountant has disputed recent claims that IFAs could fall foul

of the Inland Revenue&#39s 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.”

Letters, p26

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