ACCA (the Association of Chartered Certified Accountants) has responded to the publication of a new review of the IR35 administration conducted by HMRC by welcoming the abolition of the notorious 'Business Entity Tests'.

Jason Piper, ACCA's tax and business law manager, said: 'It is encouraging to see HMRC show willingness to engage through the IR35 Forum. This review shows that progress is finally being made in terms of improving a needlessly complex part of the tax system

'The abolition of the Business Entity Tests is an important step towards a simpler IR35 while the promise of greater communication between HMRC and those potentially affected by the legislation is also welcome.

'IR35 is still not perfect by any means, but the actions outlined by HMRC in today's review are a step in the right direction.'