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Feedback: Arctic

12 September 2007 / Mike Truman
Issue: 4125 / Categories: Forum & Feedback , Arctic Systems , IR35 , Jones v. Garnett
'I am not surprised that the House of Lords found against HMRC in Jones v Garnett'

Arctic suggestion

I am not surprised that the House of Lords found against HMRC in Jones v Garnett and I understand why they wish to review the legislation to see fair play.

They should start with scrapping the law embraced in IR35 and replace it with a fair dividend policy to be applied to all private limited companies. I suggest that dividends should be based on a percentage above the Bank of England base rate for example 10% above would currently be 15.75% and directly related to shareholders' funds as returned in the company's balance sheet.

I think you will find that directors' salaries will become much more realistic and the loss of tax and National Insurance contributions minimised hopefully to the satisfaction of the Treasury.

I recognise that there are always exceptions to the rule and in such cases the company secretary should be allowed to put a...

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