IR35 expert hired by tax unit

A former Inland Revenue compliance manager who set up her own small business specialising in IR35 is one of four private sector tax experts being hired to advise the government.

Kate Cottrell, who left the Revenue in 2003, has been seconded from Bauer & Cottrell Ltd to the Office of Tax Simplification (OTS), alongside advisers from PwC, BDO and Deloitte.

Her appointment takes the total number of industry captains at the Office to seven, each hired to "provide independent advice on simplifying Britain’s tax system."

Ms Cottrell, who oversaw all aspects of compliance for small and mid-sized firms in her time at HMRC, will be particularly central to the review of small business taxation, which is underway.

In fact, having announced the members of its expert team on Friday, the Office said it was "making good progress" in its reviews of allowances, and small business tax, including IR35.

"An interim report [from the small business tax simplification review is] due by Budget 2011", the OTS said in a statement.

"A nationwide series of road-shows are set for November. The OTS team will be on the road seeking views and ideas on where exactly the tax system is most complex for small businesses and causing administrative burdens."